Former SEC official: Gary Gensler is trying to manipulate SEC enforcement after leaving office

According to Kin financial news, John Reed Stark, the former head of the U.S. SEC's Internet Enforcement Office, issued a stern warning about the potential conflicts within the agency after Trump's victory. Stark recently posted on X that "with a series of 'lame duck' officials suddenly promoted, SEC Chairman Gary Gensler has begun a purge of the deep state. Gensler's actions are not only shameful, but also shocking.

Stark accused Gensler of promoting five senior officials in the SEC's Enforcement Division to ensure his influence after leaving office, four of whom have extensive experience in crypto enforcement. He called these measures unprecedented, noting that such promotions usually take a decade, not a month. Stark explained that these are civil servant positions, meaning the new administration cannot easily cancel them.

Stark stated: "SEC Chairman Gary Gensler is clearly trying to manipulate the SEC's Enforcement Division after his departure." He added that these promotions were made quietly, without any public announcement or press release.

Looking ahead, Stark predicted a conflict between the incoming Trump administration and Gensler's appointees: "The White House and the crypto czar will undoubtedly order the new SEC Chairman, Paul Atkins, to clean house, take names, and immediately order a permanent halt to all SEC investigations, litigation, appeals, and rulemaking related to cryptocurrencies."