SEC Enforcement Head Gurbir Grewal, Known for Tough Stance on Crypto, Leaves Agency

Crypto Reporter

Shalini Nagarajan

Crypto Reporter

Shalini Nagarajan

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Shalini is a crypto reporter who provides in-depth reports on daily developments and regulatory shifts in the cryptocurrency sector.

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Last updated:

October 3, 2024 01:02 EDT

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Gurbir Grewal, the head of the SEC’s enforcement, will leave the agency on Oct. 11 following a three-year term, according to a statement Wednesday.

Following his exit, Sanjay Wadhwa, the division’s deputy director, will step in as acting director. Meanwhile, Sam Waldon, the division’s chief counsel, will take on the acting deputy director role.

Grewal led the SEC at a time when the agency initiated over 2,400 enforcement actions, resulting in more than $20b in penalties and disgorgement, the SEC said. He was also at the regulator’s helm in banning over 340 individuals from Wall Street and oversaw the distribution of over $1b to whistleblowers.

Under his leadership, the SEC launched over 100 enforcement actions against the cryptocurrency industry. In 2023 alone, these actions brought in around $4.9b in cryptocurrency-related fines.

House Whip Emmer Celebrates Gurbir Grewal’s Departure

House Majority Whip Tom Emmer (R., Minn.), who has opposed the SEC’s approach to crypto regulation, appeared satisfied with Grewal’s departure.

“SEC Director of Enforcement Grewal encouraged lawlessness and chaos at @GaryGensler’s SEC…Good to see him packing his bags,” he said in an X post Wednesday.

Grewal Defended SEC’s Tough Crypto Stance Under Gensler’s Leadership

Grewal enforced the regulatory approach toward cryptocurrencies set by his superior, Chair Gary Gensler, who has led both growth and disruption in the crypto market. According to Gensler, US securities laws should apply to many cryptocurrency trading and exchanges.

In 2022, defending this stance at an SEC conference, Grewal said, “critics are upset because we’re not giving crypto a pass from the application of well-established regulations and precedents.”

The SEC has pursued enforcement actions against several cryptocurrency companies, including Binance, Coinbase, and Ripple Labs. However, the SEC suffered a setback when a judge dismissed a key part of its case against Ripple last year. As a result, the SEC appealed the decision.