Dan Berkovitz Begins His New Position as General Counsel of the SEC

Kavya  |  Sep 30, 2021

Dan Berkovitz, a long-time financial regulator joined his new position at the Securities and Exchange Commission (SEC) as general counsel.

Dan Berkovitz Joins As General Counsel Of The SEC

Berkovitz will begin his new job as the SEC's general counsel in November. 

Before joining the SEC, he served on the Commodity Futures Trading Commission (CFTC), which he will depart. He was also the general counsel for the derivatives regulator earlier in his career.

According to a statement from the regulator, this appointment succeeds John Coates. Coates was one of the SEC's top attorneys.

Furthermore, before he was nominated SEC chairman in April, Gary Gensler sought counsel from Berkovitz during the Obama administration.

Berkovitz expressed his crypto-skepticism while serving as a CFTC commissioner. He expressed alarm about the untamed world of DeFi, or decentralized finance, and its rapid expansion. 

Similarly, Gensler made a specific reference to the DeFi space. He stated that, despite its "wild west" feel, it is not free from rules.

Cryptocurrency Ban Was Imposed

With the arrival of yet another crypto-skeptical official to the SEC, the sector may face even more crackdowns shortly. Already this year has been difficult for the crypto sector in terms of rules and legislators.

As Chairman of the United States Securities and Exchange Commission, Gary Gensler looked to be a crypto-forward pick at first. 

However, as he progressed in the job, this was not the case. Gensler continues to make statements about the industry's need for regulation and crackdowns.

Earlier this month, he stated that crypto platforms require rules to survive. Before that, he stated that crypto markets require regulation to prevent fraud.

The Senate enacted a bipartisan tax measure in August that included a wide definition of the term "broker." 

If passed as is, it would place the majority of crypto actors in the same tax reporting tier. Such language would pose a significant danger to space innovation and mass activity.

After passing the Senate, the bill was sent to the House. The House Democrats then enacted a separate proposal that eliminates a popular tax loophole among cryptocurrency investors.

While these big rules hang over the business, Gensler outlined a possible path to broader industry restrictions. 

However, key players in the cryptocurrency sector, such as Coinbase, have urged authorities to be fair and innovative.

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