David Hirsh, who held the position of Chief of the Crypto Asset and Cyber Unit at the SEC, recently announced his resignation from the agency after spending nine years with the regulator. In a post on LinkedIn, he expressed gratitude towards his colleagues, mentors, and friends for their support throughout his tenure. Hirsh mentioned that while his career is entering a new chapter, he plans to prioritize family and travel before delving into his next professional endeavor.
There were rumors circulating that David Hirsh’s resignation from the SEC was to join pump.fun, a Solana-based marketplace that facilitates the creation and distribution of tokens by users. However, Hirsh promptly denied these speculations, dismissing them as false. This clarification puts an end to the speculation surrounding his departure and future plans.
The Ongoing Ripple Lawsuit
Hirsh’s resignation comes at a critical juncture as the lawsuit between the SEC and Ripple progresses towards its trial stage. The SEC had accused Ripple and some of its executives of conducting an unregistered securities offering by selling the XRP token back in December 2020. The recent dispute between the two parties revolves around the size of Ripple’s potential penalty, with the SEC initially seeking a hefty $2 billion fine on the firm. However, Ripple contended that the penalty should not exceed $10 million.
In a surprising turn of events, the SEC softened its stance and proposed a reduced penalty of $102.6 million, citing comparisons to other settlements. The agency justified this amount by highlighting the ratio of penalty to gross profit from violative conduct. This shift in the SEC’s position brings a new dimension to the ongoing legal battle between the regulatory body and Ripple.
The developments in the SEC’s lawsuit against Ripple have significant implications for the company and its native token, XRP. Despite securing partial victories in court throughout 2023, Ripple still faces uncertainty regarding the final outcome of the case. The fluctuations in XRP’s price in response to these legal victories indicate that the market is closely watching the legal proceedings. A decisive victory for Ripple could potentially lead to increased volatility in XRP’s price once again.
David Hirsh’s departure from the SEC and the evolving dynamics of the lawsuit between the SEC and Ripple underscore the complexity of regulatory enforcement in the cryptocurrency space. As both parties navigate through legal challenges and negotiations, the outcome of this case will have far-reaching implications for the crypto industry as a whole.