Former SEC Leader Joins Law Firm

David Hirsch, the former head of the SEC’s crypto assets and cyber unit, has joined McGuireWoods as a partner. In his new role, he will be a key figure in the firm’s securities enforcement and regulatory counseling practice, the law firm announced on Monday. Hirsch’s move to McGuireWoods follows his June departure from the SEC, where he had led the agency’s crypto and cyber division since 2022.

During his tenure at the SEC, Hirsch played a crucial role in shaping the agency’s approach to enforcing registration requirements for various crypto activities. Under his leadership, the SEC took legal action against major crypto exchanges like Coinbase and Binance for allegedly offering unregistered securities. These cases highlighted the SEC's assertive approach to crypto regulation, a strategy significantly influenced by Hirsch.

Shortly after leaving the SEC, Hirsch spoke at a Digital Assets Council of Financial Professionals conference, stressing that while the SEC wasn’t aiming to push the crypto industry offshore, it would continue to enforce regulations against unregistered securities. Despite criticism that the SEC has not provided clear rules for crypto companies and relies too much on enforcement, Hirsch insisted that the agency has made a “sincere effort” to offer guidance, though he added, “We’re not your lawyers.”

At McGuireWoods, Hirsch will now advise clients on cybersecurity and crypto-related issues from the firm’s Washington DC office. His extensive experience with regulatory matters and his deep understanding of the crypto landscape are expected to be valuable assets for the firm. Noreen Kelly, McGuireWoods’ deputy managing partner for litigation, praised Hirsch’s knowledge of regulatory thinking and the complex compliance challenges that clients face in today’s market.

In another significant move, Frances Edwards, a veteran of traditional finance, has been appointed as chief operating officer at crypto asset management firm Avantgarde. Edwards brings considerable experience from her previous role as a corporate director at DeFi Technologies subsidiary Valour and her tenure as COO of iShares in Europe, the Middle East, and Africa at BlackRock. She is expected to help Avantgarde navigate regulatory uncertainties and scalability issues. Mona El Isa, Avantgarde’s founder, noted that Edwards’ expertise will be crucial as the firm helps institutional investors, private investors, and fund managers access diversified digital asset investment products.

Meanwhile, Binance, one of the largest crypto exchanges, announced plans to hire 1,000 people this year, focusing on compliance roles. Richard Teng, CEO of Binance, revealed that the company aims to expand its compliance team from 500 to 700 by the end of the year. This hiring spree follows a series of actions taken by the Department of Justice against Binance in November 2023, which included $4.3 billion in fines and forfeitures.

These developments underscore the growing importance of regulatory expertise in the crypto industry. As the sector continues to evolve, the need for professionals who can navigate complex regulatory landscapes is becoming increasingly critical. The appointments of Hirsch at McGuireWoods and Edwards at Avantgarde reflect a broader trend of traditional finance and regulatory experts entering the crypto space, bringing with them the necessary skills to help firms manage risks and seize opportunities.

In summary, the crypto industry is witnessing a significant influx of regulatory and financial experts, highlighting the increasing focus on compliance and regulation. David Hirsch’s move to McGuireWoods and Frances Edwards’ new role at Avantgarde illustrate the growing need for expertise in navigating the challenges of the crypto market. At the same time, Binance’s expansion of its compliance team emphasizes the importance of strengthening regulatory frameworks in response to the industry’s evolving landscape.