The next president of the United States will be announced any minute now.
Current SEC Chair Gary Gensler will likely be replaced regardless of who emerges as president.
There are currently eight candidates, each with varying stances on crypto and friendliness towards the sector.
Some individuals with the highest ranking of crypto friendliness include Hester Pierce and Chris Giancarlo.
The lowest ranking in crypto-friendliness includes Robert Stebbins and Erica Williams.
The crypto industry, particularly in the US, has been crying out for clear regulations for years.
Judging by the "regulation by enforcement" approach the current chair has taken over the last few years, speculation is starting to mount.
Who will lead the US Securities and Exchange Commission next? Will they be more crypto-friendly than Gensler? Will they be just like him, or will they be worse?
President Joe Biden appointed Gensler in April 2021 and will end his term by January 2026.
However, bipartisan dissatisfaction, as well as the SEC's lawsuits of more than 100 companies/entities between 2021 and now, have led to calls for his replacement.
The next president of the United States will be announced any minute now, and both the Republican and Democratic camps have hinted at special candidates:
Candidates they believe could reshape the agency’s approach to crypto regulation.
Here’s a closer look at some of the biggest contenders for a Gensler replacement.
To start things off, Donald Trump has outright promised to fire Gensler “on day one” if he is re-elected.
He made this declaration at the 2024 Bitcoin Nashville Conference as the crowd in the video cheered.
However, removing Gensler might not be so straightforward. A major reason for this is that a president cannot just “sack” a public official without cause.
To get rid of Gensler, Trump would need a “cause” for dismissal—neglect or inefficiency, for example—a process that could take over a year.
Gensler "could" resign voluntarily if Trump wins. However, if he doesn't, the crypto industry might have to put up with the SEC chief for another year.
Which would be around the natural end of his tenure.
On the other hand, Kamala Harris has yet to make a stance on the SEC chair.
Harris or Trump, however, Gensler is likely to be replaced soon, and one of the following people could be his replacement.
Dan Gallagher, Robinhood's chief legal officer, has a history with the SEC.
He served as the agency's commissioner from 2011 to 2015 and is known for criticizing the Federal Reserve and the Dodd-Frank Act.
Dan Gallagher as SEc Chair
Gallagher is considered a less restrictive, more innovation-friendly candidate for this role.
However, considering Robinhood's major backlash for halting GameStop trading in 2021, his chances of succeeding Gensler are slightly slimmer.
Gallagher has repeatedly stated that he is satisfied with his current role as Robinhood's CLO but is open to discussions regarding the SEC chair role.
Heath Tarbert was chairman of the Commodity Futures Trading Commission (CFTC) from 2019 to 2021.
During this time, he handled a record number of crypto cases and is also a strong contender.
Tarbert currently serves as the chief legal officer at Circle (the issuer of $USDC) and has regulatory experience across multiple government agencies.
Heath Tarbert as SEC Chair
All of the above positions him well as a possible SEC chair.
Considering Tarbert's experience in a regulatory agency and a crypto company, he has as much of a crypto-friendly reputation as Gallagher.
Robert Stebbins currently works with the law firm Willkie Farr and Gallagher.
He previously served as general counsel at the SEC under the former SEC chair Jay Clayton (who was appointed by Trump).
Robert Stebbins as SEC Chair
Stebbins has experience advising on critical SEC rulings and has overseen thousands of enforcement actions.
He has experience in the nuances of securities law and could be open to clearer regulation.
Stebbins doesn’t seem to have much experience working directly in the crypto sector.
However, his connections with the SEC and Trump could make him a major chair option if the Republicans are re-elected.
Williams is the current chair of the Public Company Accounting Oversight Board (PCAOB).
She has a background in both the SEC and the Obama administration, and her role at PCAOB was marked by record-breaking fines against major firms like KPMG for quality control violations.
This alone means that Williams is committed to accountability.
Williams and Gensler on stage
The interesting thing is that Williams has yet to make her stance known about crypto. However, her emphasis on emerging audit risks at PCAOB shows that she knows how complex the industry can be.
Williams might be a major candidate because of her cautious regulatory style, but there is no way of knowing if she is better than Gensler.
Brummer was briefly nominated as the chair of the CFTC under Obama and had recently held advisory roles under Biden.
He supports balanced, clear crypto guidelines and even founded Bluprynt.
Blyprynt, for context, helps crypto firms meet regulatory compliance requirements.
This means that Brummer is committed to helping out rather than enforcing regulations unless necessary.
Chris Brummer as SEC Chair
It is also important to mention that Brummer’s ties to the Democrats (Harris' party) might be an issue for some crypto community members.
Overall, Brummer is a major choice for replacing Gensler and could even be appointed if Harris wins.
Paul Atkins was a former SEC commissioner under President George W. Bush.
He has been a major advocate for a free-market approach and has a history of opposing heavy fines for securities violations.
Atkins also led Trump's financial regulation transition team in 2016 and is currently head of Patomak Global Partners.
Paul Atkins as SEC Chair
Like many others on this list, Atkins’ Patomak Global Partners is a consulting firm that supports the digital asset sector.
Considering how deeply conservative Atkins is, he might be hand-picked by Trump as a pro-business SEC chair.
He might also push for lighter fines for companies that violate crypto securities laws during the next administration.
J. Christopher Giancarlo is affectionately known as "Crypto Dad."
This nickname alone means that Giancarlo has a long history of crypto-friendliness.
Despite being the firmer CFTC chair under Trump, Giancarlo has strong ties to the crypto community and approved Bitcoin futures trading during his tenure.
A major crypto-friendly candidate
This set the stage for what would later become the Bitcoin ETFs in January 2024.
Today, he remains active in the crypto space and co-chairs a practice focused on digital finance at Willkie Farr and Gallagher.
He also leads the Digital Dollar Project, which explores CBDCs.
Giancarlo has strong industry connections and is largely crypto-friendly. He might not only be a crypto-friendly SEC Chair but also one of the most popular individuals to lead the agency.
Hester Peirce is a current SEC commissioner and perhaps the agency's most popular pro-crypto figure.
Like Giancarlo, Pierce is known as “Crypto Mom” because of her supportive stance and has frequently criticized Gensler’s approach.
Hester Pierce as a candidate
She advocates for regulatory clarity instead of enforcement-heavy tactics and massive fines.
Her disapproval of the SEC's approach to regulation also indicates that she will likely do things differently.
Although Peirce doesn’t see herself within the SEC beyond the end of her term in 2025, she remains one of the biggest candidates for her understanding of the industry.
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