Gary Gensler and the SEC have been the subject of endless criticism over the years.
Coinbase CEO Brian Armstrong wants Gensler's replacement to "apologize for the harm done to the sector.".
According to PolyMarket, Donald Trump has stronger odds of winning the election and has promised to replace the current SEC chair.
Should Trump win, people like Dan Gallagher or several others could assume office.
It remains to be seen whether Armstrong will get his apology.
The United States Securities and Exchange Commission (SEC) has been under harsh criticism for years.
This criticism has come chiefly from the crypto community and what it sees as an unfair approach to regulating crypto.
Over the last five years, the agency, under its current chair, Gary Gensler, has sued many companies, including some well-known ones like Ripple, Coinbase, and even Binance.
So much so that Brian Armstrong, the CEO of Coinbase, has come out to voice his displeasure.
In a recent post on Twitter (X), the Coinbase CEO called for the next chair of the agency to “issue a public apology” for the “damage” it has done to the crypto industry.
Armstrong, who is a vocal crypto advocate, believes that the SEC’s actions over the years have handicapped the crypto sector.
Let's take an in-depth look at Armstrong's demands.
On 29 October, Armstrong posted a collection of statements from the SEC on Twitter.
Within these statements, Armstrong highlighted a pattern of inconsistency in the agency's approach to regulating crypto.
He pointed out some statements from the US agency on whether digital assets (like Bitcoin) qualify as securities.
Questions over whether the SEC has authority over crypto exchanges also emerged.
According to Armstrong, these shifting stances have confused the industry beyond measure and created an uncertain environment for investors and developers.
In essence, Armstrong believes that the next SEC Chair should acknowledge these issues.
He wants the agency to drop its “frivolous” lawsuits against these crypto companies and make efforts to restore the public’s trust.
Armstrong pointed out that an apology wouldn't be enough to fix the harm already done.
However, it would be a major step in the right direction for the industry as a whole.
Armstrong also wants more crypto-friendly politicians in the Senate.
Some of the likely candidates include David McCormick, the former CEO of Bridgewater Associates.
Another is John Deaton, a lawyer known for defending Ripple and XRP holders.
The Coinbase CEO has repeatedly praised both on social media, describing McCormick as a “strong advocate for digital assets” in Pennsylvania.
He has also endorsed Deaton, who is now challenging openly anti-crypto senator Elizabeth Warren in Massachusetts.
Endorsements for Deaton
Armstrong also stated that the appointment of Gary Gensler as SEC Chair added to Warren’s influence.
Warren, according to him, also encouraged Gensler to adopt the stringent regulatory approach currently in place.
He says both of these have made it more difficult for the US to lead in the crypto space.
While Brian Armstrong has yet to name his preferred candidate between Kamala Harris and Donald Trump, he may be encouraged by Trump's promise to fire Gensler if elected.
In addition to firing Gensler, Trump has also promised to appoint a new agency leader who is more open to digital assets.
Trump has reiterated that his administration will be proactive in promoting innovation in several sectors (including crypto).
So far, several names are floating around for a Gensler replacement.
Some of these include Dan Gallagher, Robinhood’s chief legal officer and former SEC commissioner.
Possible replacements for Gensler
Other possibilities include former SEC General Counsel Robert Stebbins, current SEC Commissioner Hester Peirce, and Chris Giancarlo, the former chair of the CFTC.
These candidates are regarded as more open to crypto and could change the entire landscape for crypto investors in the US under Trump.
As the 5 November presidential elections draw closer in the US, decentralized betting markets show increasingly strong odds for Donald Trump.
PolyMarket, for example, is currently showing a 66% likelihood of a Trump win over Kamala Harris.
Trump versus Harris
Recently, even a massive whale has invested over $7 million in pro-Trump bets, according to LookOnChain.
This rise in Trump's PolyMarket odds marks a major shift from when Harris took the lead just a few months ago.
Elon Musk, a well-known crypto (and Trump) advocate, recently mentioned that these decentralized prediction markets could be more accurate than regular polling methods.
Polymarket data continues to show Trump as the favored candidate and is adding weight to Musk's claim.
Overall, the upcoming election could mark a critical turning point for the SEC’s role in the crypto industry.
Armstrong’s demands, while valid, might not materialize.
However, if a pro-crypto candidate assumes office, the regulatory landscape for crypto in the US could change drastically.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information but will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.