The Chief of the Crypto Asset and Cyber Unit at the SEC, David Hirsh, recently made headlines by announcing his resignation from the agency after spending nine years with the regulator. In a post on LinkedIn, he expressed his gratitude towards his colleagues, mentors, and friends for their support over the years. Hirsh emphasized the collaborative effort that goes into securities enforcement, attributing every success during his tenure to teamwork and shared goals.
While Hirsh revealed that his career is poised to take a new direction, he mentioned that he plans to dedicate his time to family and travel before delving into his next professional venture. Despite rumors circulating about his potential involvement with pump.fun, a Solana-based marketplace enabling users to create and distribute their own tokens, Hirsh denied any such associations, labeling the claims as “false.”
Hirsh’s resignation comes at a critical juncture as the lawsuit between the SEC and Ripple progresses towards its trial phase. The dispute originated in December 2020, when the SEC accused Ripple and some of its executives of carrying out an unregistered securities offering through the sale of its XRP token. The two parties have been embroiled in a legal battle, with recent disagreements revolving around the size of Ripple’s potential penalty.
Initially seeking a $2 billion fine on Ripple, the SEC faced pushback from the company that argued the penalty should not exceed $10 million. However, in a recent development, the regulatory body softened its stance by proposing a penalty of $102.6 million. This adjustment came as the SEC referenced a comparison to the Terraform settlement’s penalty ratio, resulting in a higher figure than Ripple’s proposed ceiling.
Amid the legal back-and-forth between the SEC and Ripple, some observers view the SEC as the underdog in the case, particularly considering three partial court victories secured by the company in 2023. Each of these wins had a positive impact on XRP’s price, indicating that a decisive victory for Ripple could potentially lead to significant market volatility.
David Hirsh’s departure from the SEC, while met with speculation about his future endeavors, underscores the ongoing legal battle between the regulatory body and Ripple. As the lawsuit progresses and milestones are reached, the implications for the broader crypto industry and market dynamics remain uncertain.
