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Trump wants to "fire" Gary Gensler, who will be the next SEC chairman?

Trump wants to "fire" Gary Gensler, who will be the next SEC chairman?

BlockBeatsBlockBeats2024/11/06 09:56
By:BlockBeats

Among the eight candidates, "Crypto Mom" has no intention of becoming the chairman of the SEC, and "Crypto Dad" is temporarily in the lead.

Original title: Meet the pro-crypto contenders who could replace SEC chief Gary Gensler
Original source: Cointelegraph
Original translation: Wenser, Odaily Planet Daily


BlockBeats Note: At 14:27 on November 6, Eastern Time, as Trump took the lead in getting 270 votes, the 2024 US presidential election came to an end, and Trump was elected the 47th President of the United States. In addition, the Republican Party took the lead in winning control of the US Senate.


Editor's Note: The voting activities of the US presidential election are in full swing (latest news: The voting statistics of the seven swing states in the US election will be announced at around 12 noon on November 6 at the latest), and the key position of the US SEC Chairman has once again become the focus of attention in the cryptocurrency industry.


Based on the political situation in the United States and past popular candidates, Cointelegraph has selected 8 popular candidates, and the "next US SEC Chairman" who will replace the current US SEC Chairman Gary Gensler may be born from these people. Odaily Planet Daily will compile and summarize this in this article, and some content has been deleted for readers' reference.


8 popular candidates are competing for the position of the next US SEC Chairman


At present, the next SEC Chairman is still undecided, and a total of 8 people may take this key seat. On April 17, 2021, the current US President Biden appointed Gary Gensler as the Chairman of the Securities and Exchange Commission (SEC). According to the practice of office, his term of office will last until January 5, 2026. However, due to Gensler's previous direct intervention in the US cryptocurrency industry and high-pressure measures without clear regulatory guidelines, it is likely that his position will be lost.


Former US President and Republican presidential candidate Trump has made it clear at the 2024 Nashville Bitcoin Conference that if elected, he will fire Gary Gensler on his "first day in office."


Of course, the US President has the power to fire Gensler, but it is not easy. If Trump wants to do this, he must provide legitimate reasons for the dismissal, such as Gensler's dereliction of duty, inefficiency or other forms of malfeasance, and it may take more than a year to determine the specific reasons, conduct legal reviews and administrative transitions.


If Trump is elected President of the United States in 2024, he may have to work with Gensler for a while before the new SEC Chairman takes office. Of course, if this happens, Gensler's resignation is not unexpected, but it depends entirely on Gensler himself.


On the Democratic side, Vice President and presidential candidate Kamala Harris has not yet officially stated her position on the position of SEC Chairman, but there are signs that the position may change in order to leave room for a shift in regulatory direction. Billionaire Mark Cuban claims to have had close contact with Harris' team. He told the media that Harris prefers "clear regulatory rules" and opposes "regulation through litigation." He believes that if Harris is elected, Gensler may be eliminated. He said bluntly: "I think the obvious problem is that, judging from the low public support rate, I guess he will leave on his own initiative."


As of now, Gensler's potential successor remains uncertain. Republicans generally tend to support innovative and less restrictive regulatory methods; while Democrats generally tend to prefer stricter regulation and investor protection. The appointment of the chairman of the US SEC may set the tone for future cryptocurrency regulation, and the industry is also paying close attention to the question of "what will be the next SEC chairman's 'three fires' when he takes office'."


So, the focus of the topic becomes - who will take over Gensler's position, and what attitude will they take towards the cryptocurrency industry?


1. Hester Peirce - the "crypto mom" expected by the industry; possibility: low


SEC Commissioner Hester Peirce is considered one of the potential strong contenders to succeed Gensler. Considering that she may implement a comprehensive crypto-friendly regulatory policy as the chairman of the SEC, coupled with Trump's clear support for cryptocurrencies, the above factors make her one of the most ideal candidates.


Peirce studied financial market regulation at George Mason University and served as an advisor to government departments such as the Senate Banking, Housing and Urban Affairs Committee. She was also a lawyer in the SEC's investment management department and a partner at the WilmerHale law firm. In 2018, she officially joined the SEC after former President Obama nominated her as a SEC commissioner.


She may be the most popular regulator among cryptocurrency supporters, and many people call her "crypto mom."


Previously, she had criticized Gensler's aggressive attitude towards the cryptocurrency industry many times: the most recent one was on September 16 this year, when she and Commissioner Mark Uyeda wrote in a dissenting opinion in a cryptocurrency case: "It was a major mistake to let the cryptocurrency issue fall into an endless case of misleading and excessive intervention, and this mistake continues."


Her public support for the crypto industry and criticism of the SEC’s regulatory approach has led many members of the cryptocurrency community to hope that Trump will choose her to replace Gensler if he is elected.


However, she is unlikely to become SEC chair, as she has told industry media that she does not intend to remain at the SEC after her term ends in 2025.


"Crypto Mom"


2. Chris Giancarlo: "Crypto Dad" of Bitcoin Futures; Likelihood: High


As a lawyer and former chairman of the U.S. Commodity Futures Trading Commission (CFTC), J. Christopher Giancarlo was nicknamed "Crypto Dad" for his popularity in the cryptocurrency industry. He later accepted the nickname in his book "Crypto Dad: The Battle for the Future of Money." As previously reported by Politico, many people in the US industry lobbying firm believe that Giancarlo is a strong contender for the chairman of the SEC.


When he served as chairman of the CFTC during the Trump administration, he approved the trading of Bitcoin futures contracts, which is one of the necessary steps before the Bitcoin spot ETF is passed.


Currently, Giancarlo is a senior consultant and co-chairman of the digital work practice at the law firm Willkie Farr and Gallagher, and holds other positions in multiple organizations. At the same time, he is also the founder and director of the "Digital Dollar Project", which aims to explore ways to "optionize the US dollar."


In addition, his resume in the field of finance and digital assets also includes serving as a board member and consultant at the American Financial Exchange, the Digital Chamber of Commerce, and Nomura Holdings.


「Crypto Dad」


3. Chris Brummer: A moderate choice for the Democratic Party; Probability: High


If Harris becomes the next US president, Chris Brummer may become an important part of his government.


Brummer has multiple connections with the Democratic Party - Obama nominated him to run the CFTC in 2016, but Trump later withdrew the nomination; during the Biden administration, he became a popular candidate for CFTC chairman; Brummer is also one of the volunteers for the Biden administration's fiscal regulatory transition team.


The Anderson P.C. law firm believes that if he is appointed as the chairman of the SEC, it may indicate that the U.S. government will take a more peaceful regulatory approach to cryptocurrencies, and the regulatory focus will shift to developing clear guidelines rather than stifling innovation factors.


Brummer has some experience in cryptocurrency regulation. On May 16 of this year, he founded a company called Bluprynt that focuses on regulatory compliance of cryptocurrency companies (especially focusing on ensuring that the white paper of crypto projects complies with the EU's cryptocurrency regulations).


A source familiar with Brummer believes that he is "more qualified to be the chairman of the SEC than Gary Gensler" and said that this may be "the most peaceful resolution that the Harris campaign can propose to deal with cryptocurrencies."


"A man who is more qualified to be the chairman of the SEC than Gary"


4.Paul Atkins: An SEC commissioner with ties to Bush and Trump; Likelihood: Low


According to CNBC, Paul Atkins, a former SEC commissioner during the George W. Bush administration, has become one of the potential candidates for SEC chairman in the Trump team.


As an SEC commissioner during the Bush administration, he was known for opposing "heavy fines for companies that violate securities laws"; previously, he had opposed the Dodd-Frank Act, which strengthened federal regulatory powers after the 2008 financial crisis.


Atkins played a key role in Trump's political transition team after he was elected president in 2016, and was instrumental in influencing Trump to take a laissez-faire approach to financial regulation.


Currently, Atkins still works at Patomak Global Partners, the consulting firm he founded in 2009. At the same time, since 2017, he has also served as co-chairman of Token Alliance, an industry association that advocates for the digital asset and blockchain industries.


"The man who can influence Trump"


5. Erica Williams: Neutral candidate from Harris faction; Likelihood: Medium


Erica Williams, chair of the Public Company Accounting Oversight Board (PCAOB), has extensive experience working with the SEC.


She has held a number of important government positions—including deputy chief of staff to three SEC chairmen, special assistant and advisor on financial and economic policy in the Obama administration, and litigation partner at Kirkland and Ellis before joining the PCAOB.


During her tenure as PCAOB director, the commission levied a record $25 million fine on KPMG in the Netherlands for cheating in an internal training program and a $900,000 fine on Deloitte’s Colombia branch for quality management violations, with total fines for the department exceeding $20 million in 2023.


Although Erica herself has not made a clear statement on the cryptocurrency industry, during her tenure, the PCAOB established an investigation team focused on emerging audit risks, including those related to cryptocurrencies. Previously, Erica was criticized for ignoring the shortcomings of FTX before its collapse at the end of 2022. Regarding this matter, she clarified at a meeting in November 2022: "The PCAOB's jurisdiction is limited to the audit management of publicly traded companies and broker-dealers."


An internal source revealed that Erica has a strong interest in promoting the advancement of financial supervision, which may mean that while supporting cryptocurrency legislation, she will actively pursue illegal and criminal activities in the cryptocurrency field.


"Pro-Gary Gensler"


6. Heath Tarbert: Active CFTC Chairman; Likelihood: Low


According to previous reports by CNBC, Heath Tarbert's experience as CFTC Chairman from 2019 to January 2021 makes him one of the potential candidates for the next SEC Chairman. Under his leadership, the CFTC has set a number of industry records, including a record number of cases handled in a single fiscal year.


Tarbert has worked in multiple federal government departments, including the White House, the Department of Justice and the Department of the Treasury, and has extensive political experience. Of course, he was once embroiled in huge controversy - just 27 days after leaving the CFTC, he was hired as chief legal officer by Citadel Securities, sparking criticism of the so-called "revolving door phenomenon" of "working from public service to private companies."


Currently, Tarbert is the chief legal officer and head of corporate affairs at Circle, the issuer of the stablecoin USDC.


The "revolving door pusher" of the government and enterprises


7. Robert Stebbins: An advisor with close ties to Trump's SEC chairman; Possibility: Medium


According to Politico, several industry experts are considering Robert Stebbins' potential as SEC chairman.


Stebbins himself worked at Willkie Farr and Gallagher from 1993 to 2017, and then joined the SEC as chief legal officer.


According to Willkie's company website, during his tenure as SEC general counsel, Stebbins played a key role in as many as 85 rulemakings, hundreds of staff appointments, the issuance of interpretive bills, and the supervision of more than 2,750 enforcement actions. When Jay Clayton, Trump's former law school classmate and SEC chairman during his presidency, took office in 2017, he assisted the latter in forming a subordinate team. (Odaily Planet Daily Note: For more information about Clayton, please see the previous article "The US SEC "generated" $4.7 billion in revenue in 2024, and the cryptocurrency industry became a "cash machine"? ".)


In addition, Stebbins has also cooperated with financial giant Morgan Stanley on several important transactions, including the "Amgen acquisition of Horizon Therapeutics" for up to $27.8 billion and the "proposed merger of Allergan and Pfizer". He also worked on Fiat Chrysler Automobiles NV’s bid for a majority stake in Chrysler in the early 2010s.


“One of the Trump faction”


8. Dan Gallagher: Federal Reserve critic; Likelihood: Low


Dan Gallagher, chief legal officer at financial trading firm Robinhood, is unusually familiar with the SEC — he served as a Republican committee member and held various positions at the agency during the pre-Obama administration, from 2011 to 2015.


In the late 2000s (close to 2010), Gallagher played an important role in the SEC's trading and market division, served on the committee during the liquidation of banking giant Lehman Brothers, and took part in a series of challenges during the financial crisis.


He is known for his highly controversial dissenting views and is critical of the Federal Reserve and the Dodd-Frank Act. He also advocates a comprehensive review of trading practices in the U.S. stock market.


It is worth mentioning that Gallagher's candidacy still faces some possible obstacles. Democrats are generally cautious when appointing industry leaders to regulatory positions, and Robinhood's past controversies - such as the decision to suspend trading in GameStop shares during the "Meme stock frenzy" in 2021 - may affect its candidacy.


Whether Gallagher is willing to leave Robinhood for the SEC position is still uncertain. He joined the company's board of directors in October 2019 and became chief legal officer in May 2020; he told the media that he enjoys his current position and is honored to be included as a potential candidate for the next SEC chairman.


「Onlookers from the crypto industry」


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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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