As the outcome of the 2024 US presidential election looms, the crypto industry closely watches the potential fate of Securities and Exchange Commission (SEC) Chairman Gary Gensler.
Over the past three years, Gensler has been a controversial figure in the crypto space, with many in the industry accusing him of waging an unfair campaign against digital assets with lawsuits targeting key players in the nascent digital asset sector.
In response, the industry has mobilized significant financial resources for political donations to influence the election outcome and replace the SEC’s Gensler in the incoming presidential administration.
A New Era For Crypto Regulation?
Both presidential candidates, Donald Trump and Kamala Harris, have indicated openness to a shift in the SEC’s leadership. Trump has promised to remove Gensler on his first day in office, emphasizing his commitment to making the US the “crypto capital of the world.”
Meanwhile, Harris has distanced herself from President Biden’s anti-crypto policies, advocating a more supportive regulatory framework for digital assets. Nevertheless, her approach appears somewhat more ambiguous, with fewer speeches aimed at investors and participants in the sector.
The prospect of Gensler’s departure raises critical questions about who might succeed him and how that could impact cryptocurrency regulation.
Legal experts, including Jenice Malecki, who chairs the New York State Bar Association’s Securities Arbitration Committee, suggest that both candidates are considering a range of candidates who could reshape the SEC’s approach to crypto.
As previously reported by Bitcoinist, if former President Donald Trump wins the presidency on Tuesday, he may look to appoint Dan Gallagher or Hester Peirce as Gensler’s successor.
Gallagher has a background in various roles at the Securities and Exchange Commission and currently serves as Chief Legal Officer (CLO) at Robinhood. This trading platform offers both stocks and cryptocurrencies.
Robinhood’s CLO has criticized the SEC’s current enforcement-heavy approach, arguing that it creates uncertainty for the industry. “Rather than issue rules to provide regulatory certainty to an industry craving it, the SEC has instead targeted individual firms,” Gallagher stated to Fortune.
Hester Peirce, another potential appointee, has been an SEC commissioner since 2018 and has frequently voiced her concerns about the agency’s aggressive stance on cryptocurrency.
Dubbed “Crypto Mom” for her continued support of innovation in the industry, she advocates for more constructive dialogue and regulatory clarity, arguing that enforcement should not be the primary means of policy development in the crypto space.
Potential SEC Nominees For Harris
On the other hand, if Harris takes the presidency, Fortune reports that she might consider Chris Brummer or Erica Williams for the US SEC chair position.
Chris Brummer is a faculty director at Georgetown’s Institute of Economic Law and has a background in financial regulation, having previously been nominated to chair the Commodity Futures Trading Commission (CFTC). He recently launched a crypto disclosure company to improve regulatory compliance for digital assets.
Erica Williams, chair of the Public Company Accounting Oversight Board, is another candidate under consideration. She has experience in financial policy under the Obama administration and has been involved in discussions about the emerging risks associated with digital assets.
Despite the uncertainty surrounding SEC leadership, experts agree that regulation is essential for the market. Jenice Malecki emphasizes that a lack of regulatory oversight harms investors and legitimate crypto businesses while allowing bad actors to thrive.
Featured image from DALL-E, chart from TradingView.com