A significant change occurred at the U.S. Securities and Exchange Commission (SEC). Heather Slavkin Corzo, a leading critic of cryptocurrencies, resigned as SEC policy director, and Corey Klemmer was appointed in her place. Let’s look at the details of this development.
SEC Chair Appointed Corzo
SEC Chair Gary Gensler appointed Corzo in April 2021 and highlighted the significant regulatory advancements during her tenure. Corzo made notable contributions, particularly in implementing market fund reforms, accelerating the securities settlement cycle, and enhancing corporate disclosures related to cybersecurity incidents. These measures received high praise for strengthening investor protections and facilitating capital formation processes.
Chair Gensler described Corzo as “one of his most trusted advisors” and noted that her departure marked the end of a significant era for the SEC. Corzo, one of the first appointees after Gensler took SEC leadership, previously served as the director of capital markets policy at the American Federation of Labor and Congress of Industrial Organizations before joining the SEC.
Corzo’s Successor
Corey Klemmer, who joined the SEC as a corporate finance advisor in July 2021, will succeed Corzo. The SEC announced that it does not expect any changes in its approach to crypto regulation following Klemmer’s appointment. According to Fox Business reporter Eleanor Terrett, both Corzo and Klemmer have shown a skeptical attitude towards crypto assets.
This continuity in policy perspective is significant as the SEC engages in legal battles with major players in the crypto industry, such as Ripple and Coinbase. The SEC faces challenges, particularly with the recent Senate rejection of the crypto-averse SAB 121 guidance. This guidance aimed to impose stricter regulations on cryptocurrencies, but the Senate’s rejection may lead the SEC to reassess its regulatory strategy regarding cryptocurrencies.
SEC’s Continued Skepticism Towards Cryptocurrencies
During Corzo’s tenure, the SEC maintained a skeptical stance towards cryptocurrencies. This attitude brought about serious discussions regarding regulations in the crypto market alongside regulatory advancements. Corey Klemmer’s appointment is seen as a sign that the SEC will continue its strict stance in this area.
Heather Slavkin Corzo‘s resignation and Corey Klemmer’s appointment represent a significant change in the SEC’s internal dynamics, even though no change is anticipated in the regulatory stance towards cryptocurrencies. This transition period will be closely watched for the SEC’s future regulatory strategies and investor protection policies.
