As Donald Trump swept the 2024 U.S. presidential elections against Kamala Harris, all eyes are on Gary Gensler, the Securities and Exchange Commission (SEC) chairperson, whose ouster was one of the key election issues for Trump.
Trump, in his caricature style, had promised to fire Gensler on day one of him taking oath, much to the jubilation of the crypto community. Trump has also promised to replace Gensler with someone who will be more sympathetic to the crypto community in the U.S.
However, Trump faces a significant legal barrier: while he can demote Gensler from the chairman role, he cannot technically “fire” him directly due to constitutional restrictions protecting SEC members from arbitrary dismissal.
In this article, we will track down the journey of Gensler as SEC chair and how he emerged to become crypto’s main villain and who are the top contenders to replace him.
Gensler’s attack on Crypto Community
Gensler, who took office as SEC Chair in 2021, has been a polarizing figure, especially within the cryptocurrency industry. His rigorous enforcement actions against major crypto exchanges like Coinbase and Binance have made him one of the crypto community’s least-liked regulators. Since his appointment, Gensler has argued that many cryptocurrency platforms operate unlawfully under federal securities laws, and he’s pushed for stricter regulatory measures, which the industry views as hostile and stifling.
Under Gary Genslar’s leadership, the SEC has pursued lawsuits and investigations targeting companies for unregistered securities sales, which have alarmed industry leaders and investors who hoped for a more innovation-friendly regulatory approach. As a result, he has been criticized for imposing traditional financial standards onto the nascent crypto space, a move seen by many as potentially driving innovation and capital away from the U.S. and into more crypto-friendly jurisdictions like Singapore and Switzerland.
Trump’s Vision: Turning U.S. into Crypto Capitol
Trump, positioning himself as a crypto-friendly candidate, has openly promised to make the United States a hub for cryptocurrency innovation. In contrast to Gensler’s enforcement-heavy approach, Trump has talked about assembling a new advisory board focused on digital assets and even hinted at policies that could make the U.S. the “crypto capital of the world.” Such a move would align with a global shift where governments are increasingly looking at crypto as an economic and technological opportunity rather than a regulatory burden.
In his statements, Trump emphasizes the importance of “decentralized finance” and hints at policies to encourage crypto innovation while providing oversight to prevent fraud. His promises have resonated with crypto entrepreneurs, investors, and companies who view Gensler’s policies as an obstacle to progress.
Potential Successors: Who Could Replace Gensler?
If Trump were to demote Gensler, several candidates are rumored to be in consideration for the SEC Chair position, each bringing different regulatory philosophies and industry backgrounds:
1. Hester Peirce
Known as “Crypto Mom” within the crypto world, Peirce is an existing SEC Commissioner and a vocal advocate for clearer, innovation-friendly regulations. She has repeatedly challenged Gensler’s strict approach, favoring regulatory frameworks that encourage growth in the digital asset industry.
Hester Pierce is the top choice from the crypto community to take the SEC Chair from Gary.
2. Brian Brooks
Former Acting Comptroller of the Currency, Brooks has a history in the crypto sector and is widely respected for his efforts to integrate digital assets into traditional finance. He would likely pursue a lighter-touch regulatory style supportive of crypto development. Brooks is a very strong candidate for SEC Chair after Gensler vacates his seat.
3. Chris Giancarlo
Former CFTC Chair and co-founder of the Digital Dollar Project, Giancarlo has been a proponent of blockchain technology and central bank digital currencies (CBDCs). His experience in both government and private sector crypto initiatives could bridge the gap between traditional.
Crypto community favors him as next sec chair for his approval of bitcoin futures listing on the CME during his CFTC tenure.
4. Paul Atkins
A former SEC Commissioner under President George W. Bush, Atkins is favored by many in Trump’s orbit due to his conservative approach to financial regulation.
Atkins has historically opposed heavy-handed penalties and supported policies that promote market freedoms, a stance that aligns well with Trump’s deregulatory ambitions.
He also co chairs a pro-crypto advocacy group, Token alliance and runs a for-profit crypto consultancy, Patomak Global Partners.
5. Dan Gallagher
A former SEC Commissioner and current legal officer at Robinhood, Gallagher has expressed criticism of regulatory overreach. His background suggests he would align with a Trump administration’s preference for a less interventionist approach to markets.
6. Chris Brummer
A professor at Georgetown Law with ties to both parties, Brummer’s focus on balanced regulation could make him a bipartisan choice if Trump were open to compromise. He has experience in digital asset regulations and is seen as a figure who could moderate between pro-innovation and consumer protection perspectives.
Impact of replacing Gary Gensler
Replacing Gensler with a crypto-friendly SEC Chair could radically reshape the regulatory landscape for digital assets in the U.S. This shift could potentially reverse some of the lawsuits and regulatory pressures that have targeted crypto exchanges and products. With an estimated $1 trillion in cryptocurrency market cap affected by Gensler’s regulatory stance, this shift could invite more investment and innovation domestically, possibly positioning the U.S. as a leading global center for crypto adoption and development.
However, any new SEC chair would still need to navigate the agency’s core mandate of investor protection. Critics argue that loosening regulations too much could expose retail investors to undue risks in the highly volatile and occasionally fraudulent crypto markets. Balancing innovation with oversight would be crucial for any incoming SEC Chair, as they would need to assure both crypto supporters and cautious lawmakers.
Conclusion: A Turning Point for U.S. Crypto Policy?
Trump’s proposal to replace Gensler, while legally complex, signals a broader shift in how the U.S. government might approach cryptocurrency if he returns to office. For the crypto industry, this could mark a turning point, potentially offering a regulatory environment that favors growth and innovation over enforcement.
Also read: Who is Gary Gensler, the Most Hated Man on Planet Crypto?
