Good day everyone,
I hope you are all having a good day, welcome to CryptoGod-1's blog on all things crypto. In this post I will be looking at the potential candidates to replace Gary Gensler as the chair of the SEC under the Trump administration.
Potential SEC Chair
With the news confirmed of Donald Trump winning the race for the White House, the attention has now shifted to the make up of his administration. During his speech at Bitcoin 2024, Trump promised to fire current Chairman of the Securities and Exchange Commission (SEC) Gary Gensler on his first day, it is an interesting and important position which will need to be filled. With an uproar applause, Trump stated:
“On day one, I will fire Gary Gensler and appoint a new SEC Chairman. I didn’t know he was that unpopular. Let me say it again. On day one, I will fire Gary Gensler.”
With a new president who is dedicated to supporting the crypto industry, the likelihood is that Trump will pick a candidate who will also favour creating a strong crypto based environment. His win marks a turning point for the industry, but the future of crypto will depend financial regulators. Leaders with a supportive and progressive approach to crypto could shift the industry’s trajectory significantly and it will be paramount for Trump to ensure the right person gets the job at the SEC.
While there will be some formalities in removing Gensler from his position without showing just cause, which includes a possible legal challenge from the SEC itself, it is likely he will resign or accept involuntary departure at some point in 2025 after Trump officially takes office. Gensler was appointed by current United States President Joe Biden on April 17, 2021, and his term will run until January 5, 2026 if he decides to see it out. It will be tough for Trump to present a proper cause for his dismissal, such as neglect, inefficiency or some other form of malfeasance. It could take over a year to establish cause, legal reviews, and administrative transitions to take place. If Trump does succeed is seeing Gensler leave his post, then there are a number of options to replace him.
Below I have outlined some of the favoured candidates for the position.
Hester Peirce
She is currently one of the five sitting SEC Commissioners and Peirce is well known for her pro-crypto views. Known as “Crypto Mom” by her fans in the industry, Peirce researched financial market regulation at George Mason University and served as an adviser to the Senate Committee on Banking, Housing, and Urban Affairs. She was also a staff attorney in the SEC’s Division of Investment Management and has previously worked as an associate at the law firm WilmerHale. She made her move to the SEC after former President Barack Obama nominated her as an SEC commissioner in 2018.
Peirce has openly criticized Gensler’s aggressive approach towards the crypto industry on a number of occasions. Back on September 16 she, along with SEC Commissioner Mark Uyeda, wrote their opinions on a crypto case, stating:
“Leaving crypto to be addressed in an endless series of misguided and overreaching cases has been and continues to be a consequential mistake.”
Her outspoken advocacy for the industry and criticism of the commission’s methods makes her a favoured candidate within the crypto community. She openly spoke out against the commissions decisions to sue Coinbase, Ripple, Telegram, and others. She has argued that treating crypto like traditional securities could stifle innovation and create unnecessary barriers. Many will hope Trump picks her to replace Gensler, however it seems unlikely she would become chair of the SEC as she has previously indicated to the media that she does not plan to stay with the commission after her term ends in 2025.
Brian Brooks
Brooks is the former Acting Comptroller of the Currency, a powerful bureau of the US Treasury. He is another clear candidate for the SEC chair given he works as a prominent executive in the crypto industry. he briefly worked as CEO of Binance.US and, importantly, saved face by resigning after only a few weeks on the job after he realized that Changpeng Zhao (CZ) was not complying with the Bank Secrecy Act (BSA). CZ later pleaded guilty to criminal violations of the BSA and recently finished his 4 month sentence.
Chris Giancarlo
Giancarlo is the ex-Chairman of the Commodity Futures Trading Commission (CFTC) and is one of two ex-CFTC leaders who is in line for a possible SEC Chair appointment. Nicknamed the “Crypto Dad,” he is an former lawyer and has favourable views on blockchain technology. He authored the book CryptoDad: The Fight for the Future of Money and during his tenure at the CFTC he approved the listing of bitcoin futures on the CME. This was considered a necessary step toward spot Bitcoin exchange-traded funds (ETFs). Giancarlo is currently senior counsel and co-chair of Willkie Farr and Gallagher’s digital works practice and he is also the founder and director of The Digital Dollar Project, an initiative aimed at exploring ways to “future-proof” the US dollar. Given his extensive involvement in the finance and digital asset sectors he is considered a favourable candidate for Trump to appoint, and his experience also includes advisory positions with the American Financial Exchange, the Chamber of Digital Commerce and Nomura Holdings.
Heath Tarbert
Tarbert is also an ex-CFTC Chairman and left the CFTC back in 2021 to take up a position at Citadel, a major market maker. He currently works as Chief Legal Officer and Head of Corporate Affairs at Circle, the issuer of the world’s second-largest stablecoin, USDC. This caused controversy regarding the revolving door policy from public service to private work. His experience at the CFTC ran from 2019 to January 2021 and under his leadership the CFTC set several records, including the most cases handled in a fiscal year. Tarbert also has extensive experience across the federal government which includes having worked in the White House. Department of Justice and Treasury Department.
Dan Gallagher
Throughout the years 2011 to 2015 Dan Gallagher worked as a republican commissioner at the SEC under the Obama administration. He currently works as Chief Legal Officer at Robinhood. In both positions he earned positive reviews from the crypto community for his work, especially his role in manoeuvring Robinhood's crypto listings through SEC disclosures. He also emphasised the need for Congress to establish a regulatory framework for digital assets, and positioned himself as an advocate for responsible crypto innovation.
During the 2000's he also played a significant role in the SEC’s Division of Trading and Markets. This meant representing the commission in the liquidation of the Lehman Brothers following the financial crash, while also addressing other challenges during the crisis. He is known for his strong opinions and not holding back, such as when he was critical of the Federal Reserve and Dodd-Frank Act. He also advocated for a comprehensive review of trading practices in the US stock market.
Paul Atkins
Atkins is a former SEC commissioner from the George W. Bush administration, while he also currently co-chairs the Token Alliance. This is a pro-crypto advocacy group and shows his alignment towards a proactive approach with the crypto community. He also runs a for-profit crypto consultancy, Patomak Global Partners, which he founded in 2009.
During his time at the SEC he built a track record for opposing hefty fines on companies violating securities laws. He was opposed to the Dodd-Frank Act, which strengthened federal regulatory authority after the 2008 financial crisis. Atkins also played a key role on Trump’s 2016 transition team and he was instrumental in shaping the former president’s laissez-faire approach to financial regulation.
Mark Uyeda
Mark Uyeda was sworn in as a SEC commissioner back in June 2022 and has been a vocal critic on the SEC’s current approach to crypto regulation. Back in October he gave an interview to Fox Business’s “Mornings with Maria” where he described the agency’s policies as “really a disaster for the whole industry”. He reiterated his dismay with the SEC's policy through enforcement mantra without providing any clear guidelines.
He has over 15 years experience serving in various roles, including as Senior Advisor to Chairman Jay Clayton and in the Division of Investment Management. He possesses a comprehensive understanding of the agency’s operations and regulatory landscape and would likely employ a more collaborative approach with the crypto industry in creating clear guidelines while also potentially rolling back some of the stringent crypto regulations and enforcement actions implemented under Gensler’s leadership.
Robert Stebbins
Several industry experts also believe Robert Stebbins is a strong potential candidate for the SEC chair role. He is currently leading Willkie Farr and Gallagher’s corporate governance practice, and Stebbins has a long history with the firm. He worked there from 1993 until 2017 prior to joining the SEC as its head legal officer. While working as general counsel at the SEC, Stebbins played a crucial role in advising on over 85 rules, hundreds of staff orders, interpretive releases, and overseeing over 2,750 enforcement actions. He also assisted Jay Clayton, Trump’s SEC chair and former law school classmate, in assembling his team when Clayton took office in 2017.
All of these candidates for the SEC chair position are much more crypto friendly than Gary Gensler. While any person appointed the role of chair must be approved by the senate prior to taking the position, it is almost certain that Trump will choose a pro-crypto candidate for the role. Gensler was very much anti-crypto in his stance. Just when this new appointment will take place is anyones guess, but fingers crossed it will happen sooner rather than later.
Have a great day.
Peace. CryptoGod-1.
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