Trump And Harris Likely To Fire SEC Chair. Who’ll Be Next?

In the crypto industry, few figures evoke as much ire as Gary Gensler. Once a respected academic and former head of the Commodity Futures Trading Commission (CFTC), he took the chair of the US Securities and Exchange Commission (SEC) in April 2021, appointed by Joe Biden.

In the following years, he has become a polarizing figure, embodying regulatory overreach. Gensler has been responsible for a wave of enforcement actions against major exchanges and projects, including Binance and Coinbase, cementing his reputation as a “crypto boogeyman” and an existential threat to the crypto business and the very ethos of decentralized economy. But his reign may soon be over – no matter the presidential election results.

Gensler will be out of the picture under Trump

In July this year, Donald Trump, once a crypto skeptic and hardly a crypto lover now (even if he tries to pretend otherwise), made a heartwarming promise. The Republican Party nominee, should he be reelected, would fire Gary Gensler “on day one.” Trump also vowed to pick crypto-friendly regulators, set up an advisory council focused on crypto policies, and, perhaps most importantly, scale back on reinforcement measures.

“This afternoon, I’m laying out my plan to ensure that the United States will be the crypto capital of the planet and the Bitcoin superpower of the world and we’ll get it done,” Trump said at the Bitcoin Conference in Nashville. Obviously, words don’t cost much, but they are heard and remembered by voters.

Harris unlikely to save Gensler

But what if Trump loses the race? This may not save Gensler from parting with his post. Kamala Harris, as a Democrat, is most certainly not going to go off the rails on regulations and institutional oversight. The change is quite likely, though.

Harris’s stance on cryptocurrency has evolved recently, as she publicly expressed support for digital assets during a fundraiser in September 2024. She then stated her intention to encourage innovative technologies while protecting consumers, which sparked cautious optimism among crypto supporters.

Skepticism remains but Harris is under pressure to clarify her position and provide a concrete regulatory framework. For one thing, because a growing number of Americans are crypto owners, and for another, because “the other party” has been advocating for crypto in a far more aggressive manner. And that’s not all.

Mark Cuban: Gary Gensler “is gone”

Mark Cuban, a billionaire investor with close ties to Harris’s team, has recently made it clear that the Democrat candidate is opposed to Gensler’s tactic of regulatory enforcement. In practical terms, this means that Gensler may soon be out of the picture. “I think the obvious issue is Gensler, and my guess is that, based on the lack of public support for him, that he is gone,” Cuban said in a commentary for Cointelegraph.

The current vice president has yet to state an official position on the SEC chair. However, based on what has been both outright declared and alleged up to this point Gensler’s future doesn’t look bright. SEC chair is slated to serve until 2026 but with a proper cause for dismissal – not challenging to figure out by a seasoned legal team – he may soon be out of office.

Gary Gensler’s potential successors as the US SEC chair

So, who’s coming next? There are several names on the roster.

Hester Peirce

Hester Peirce often referred to as “Crypto Mom,” is widely considered among top contenders. Currently, a SEC Commissioner, Peirce has advocated for clearer and more supportive regulations for digital assets. She was appointed by Donald Trump and sworn in on January 11, 2018. Her pro-crypto stance and push for innovation-friendly policies have made her a notable figure in the financial regulatory landscape.

Chris Giancarlo

Giancarlo fits in well with Peirce on the successors list not least for his “Crypto Dad” nickname. As the former Chairman of the CFTC from 2017 to 2019, Giancarlo advocated for a balanced regulatory approach that embraced innovation while ensuring market integrity. He’s been known for his supportive stance on blockchain and his role in launching Bitcoin futures, which positioned him as a champion for the crypto community. Giancarlo has also been recognized by the crypto community for his “Do No Harm” philosophy, appealing to those seeking a more lenient regulatory environment.

Brian Brooks

Brian Brooks also ranks among the top crypto enthusiasts in regulatory circles. A veteran crypto executive and a former Acting Comptroller of the Currency under Trump, Brooks has made serious efforts to integrate digital assets into the traditional financial system. During his tenure, he advocated for regulatory clarity and innovation in the crypto space. His vision contrasts sharply with Gensler’s stringent approach, making him a top contender on the Republican side of politics.

Dalia Blass

Dalia Blass is another name floated in the Republican circles in the context of chair succession in SEC. With her experience as the former Director of the SEC’s Division of Investment Management, Blass is a serious candidate to make things right in what has become Gensler’s kingdom. During her tenure, she emphasized the need for clarity and caution regarding cryptocurrency-related investment funds, notably through her 2018 letter addressing the challenges and risks associated with funds holding significant amounts of digital assets. This cautious approach has earned her respect for prioritizing investor protection. At the same time, she opposed Gensler’s enforcement-based agenda with its detrimental effects on the crypto and tech communities.

Chris Brummer

Chris Brummer is another top contender in the Democrat team. A Georgetown Law professor and financial regulation expert, he has been known for his favorable views on cryptocurrencies. Brummer has been described as a potential “peace offering” to the crypto community, advocating for clearer regulations that foster innovation while ensuring investor protection. His experience includes serving on the board of Fannie Mae and leading Georgetown’s Institute of Economic Law, making him well-equipped to navigate the complexities of digital assets.

The list is lengthier. Names floated in the media and backstage rumors include:

– Paul Atkins – the CEO of Patomak Global Partners LLC, a consulting firm he founded in 2009, and a Republican who previously served as an SEC Commissioner from 2002 to 2008,

– Dan Gallagher – the Chief Legal Officer at Robinhood and a former SEC Commissioner, also a Republican who has been involved in various regulatory roles, including during the Obama administration,

– Robert Stebbins – a former General Counsel of the SEC, now associated with Willkie Farr & Gallagher LLP, politically leaning towards Republicans, given his roles in previous administrations,

– Heath Tarbert – currently the Chief Legal Officer and Head of Corporate Affairs for Circle and a Republican who served as the Chairman of the Commodity Futures Trading Commission (CFTC) from 2019 to 2021

– Erica Williams – the Chair of the Public Company Accounting Oversight Board (PCAOB), appointed by the SEC in November 2021, with a background in advising Barack Obama and various SEC chairs, which aligns her with Democrats.