Following Donald Trump’s recent election victory, there is increasing speculation about the selection of a new chair for the U.S. Securities and Exchange Commission (SEC). As discussions unfold, many are keen to understand what this could mean for the cryptocurrency sector. According to Fox Business journalist Eleanor Terrett, sources within Trump’s transition team have indicated that the next SEC chair will likely have a pro-crypto stance. This raises significant questions, such as whether Gary Gensler will continue as the SEC chair once Trump assumes office on January 20.
Trump’s Team Hints at a Pro-Crypto SEC Chair
In a recent conversation, Fox Business reporter Eleanor Terrett engaged with a source close to Trump’s team to gain insights into the administration’s plans for the new SEC chair. The pivotal question revolved around whether the next leader of the SEC would back crypto-friendly policies. Terrett tweeted about her interaction:
“I asked a person close to the Trump transition team about some of the names being floated for @SECGov chair and whether views on #crypto would factor into the decision. The response: ‘I promise you it will be someone pro-crypto.’” — Eleanor Terrett (@EleanorTerrett) November 8, 2024
According to the source, the team is committed to selecting someone who will support digital assets, hinting at a potential shift from the current administration’s cautious stance on cryptocurrencies. This assurance of a pro-crypto choice suggests a forthcoming change aimed at fostering growth and innovation in the digital asset industry, which could have wide-ranging implications for the market.
Will Gary Gensler Step Down?
Currently serving as the SEC Chair, Gary Gensler, appointed by President Joe Biden in early 2021, has adopted a stringent regulatory approach towards the cryptocurrency industry. Under his leadership, the SEC has initiated numerous enforcement actions against crypto companies, reflecting a tough regulatory environment. Gensler’s term is set to last until 2026, but with Trump’s impending presidency, there is speculation regarding whether Gensler will face pressure to resign. As of now, Gensler has not publicly commented on whether he intends to step down, leaving room for speculation and strategic maneuvering within the SEC.
Top Picks for Next SEC Chair
Several notable candidates are being considered to succeed Gary Gensler as the new SEC chair. Among these, Dan Gallagher, Robinhood’s Chief Legal Officer and a former SEC commissioner, is seen as a strong contender due to his favorable views on cryptocurrencies and criticism of the current regulatory framework. Another prominent figure in consideration is SEC Commissioner Hester Peirce, who has consistently advocated for the crypto industry. Additionally, Richard Farley, a partner at Kramer Levin Naftalis & Frankel, is also in the mix of potential candidates. As these discussions progress, the primary focus remains on appointing a chair who will prioritize digital asset growth and support technological innovation within the industry.
The appointment of a pro-crypto SEC chair could signal a significant shift in the regulatory landscape, potentially easing the path for innovation and development in the cryptocurrency sector. As the world watches these developments unfold, the future of digital assets in the United States hangs in the balance, with the potential for transformative change on the horizon.
