Berkovitz begins his new position as the SEC's general counsel this November. Prior to his SEC appointment, he held a position on the Commodity Futures Trading Commission (CFTC), which he will leave. In addition, at the beginning of his career he was general advisor to the derivatives regulator.
This move replaces John Coates, according to a statement from the regulator. Coates was one of the SEC's top attorneys.
Also, prior to his appointment as SEC president in April, Gary Gensler sought advice from Berkovitz during the Obama administration.
During his time as CFTC commissioner, Berkovitz revealed a crypto-skeptical stance. It raised concerns about the rapid development of the wild world of DeFi, or decentralized finance. Likewise, Gensler made a comment focused on the DeFi space. He said that despite its "wild west" character, it is not exempt from regulations.
Repression of cryptocurrencies
The addition of another crypto-skeptical official to the SEC could mean even more industry crackdowns in the near future. Already this year has proved difficult for the cryptocurrency industry when it comes to regulations and legislators.
Gary Gensler initially appeared as a crypto-forward choice as chairman of the United States Securities and Exchange Commission. However, when he moved into his new role, that was not the case. Gensler continues to comment on the need for regulation and crackdowns in the industry.
Earlier this month he said crypto platforms need regulations to survive. Prior to that statement, he also stated that cryptocurrency markets need regulation for fraud prevention.
Last August the Senate approved a bipartisan tax bill with a broad definition of the term "broker". When pushed as is, it groups most of the players in the crypto space in the same tax reporting range. Such a formulation would be a huge threat to innovation and mass activity in space.
After the bill passed to the Senate, it went to the House. House Democrats then passed an unrelated provision, closing a popular tax loophole among cryptocurrency investors.
As these important regulations loom over the industry, Gensler detailed a potential roadmap towards broader industry regulations. However, major names in the cryptocurrency industry like Coinbase are urging regulators to act with equality and innovation in mind.
The calm before the storm
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