John Reed Stark, former head of the U.S. Securities and Exchange Commission (SEC)’s Office of Internet Enforcement, has issued a stark warning about potential clashes within the agency following Donald Trump’s election victory. In a post on social media platform X on Wednesday, Stark detailed:

With a rush of sudden ‘lame duck’ promotions, SEC Chair Gary Gensler has begun a shameful deep state crusade. Gensler’s actions are not just disgraceful, they are scandalous.

Stark accused Gensler of promoting five senior officers within the SEC’s Enforcement Division to secure influence after his departure, with four of those officers having significant experience in crypto enforcement.

The former SEC internet enforcement chief described the moves as unprecedented, noting that such promotions typically span a decade, not a single month. He explained that these are career civil service roles, meaning they cannot be easily removed by the incoming administration.

“SEC Chair Gary Gensler is clearly attempting to pilot the SEC Enforcement Division from the grave,” Stark said, adding that the promotions were handled quietly without public announcements or press releases. He warned:

When the recently nominated Paul Atkins assumes the position of SEC Chair and appoints a new SEC Enforcement Director, the new Enforcement Director will have five of their HQ senior officers (the overwhelming majority!) hand-picked by Gary Gensler.

Looking ahead, Stark predicted a brewing conflict between the incoming Trump administration and Gensler’s appointees. “The marching orders to Chair Atkins from the White House and the crypto Czar will undoubtedly be to clean house and take names – and immediately order that all SEC crypto-related investigations, litigation, appeals and rule-making permanently cease and desist,” the former SEC official noted.

He expressed concern for the officers caught in the middle, stating: “Gensler has thrown all five under the bus, compelling them to engage in a futile battle with future Chair Paul Atkins, which will ultimately result in their defeat. That is not just sad and disrespectful, it’s selfish and egotistical.” Stark concluded by suggesting that the SEC’s internal power struggle could become a flashpoint as Trump’s pro-crypto stance shapes the agency’s future.

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