Will Gary Gensler continue as SEC Chair if Trump comes into power?

A cryptocurrency-focused lawyer, MetaLawMan, recently shared an article in which he shared his views on the change of board, especially SEC Chairman Gary Gensler. The change is subject to the US presidential election in 2024 if Donald Trump gets elected.

There is an ongoing buzz around the changes in the structures of various government bodies, including the SEC. The changes are subject to change in the ruling party, i.e. if control comes into the hands of the Republican Party under the leadership of ex-president Donald Trump.

Evidences from Past

In history, the USA has witnessed the resignation of some top authorities with the change in government. For instance, in 2020 when Joe Biden got elected, Jay Clayton, Trump’s appointee, resigned from his post as SEC Chairman and Commissioner.

After Clayton’s resignation, Joe Biden appointed his own SEC chairman, maintaining the traditional majority ratio of 60/40 in favor of the ruling party. 

Historically, SEC chairmen have resigned from their duties immediately after the change of government. In other words, SEC chairpersons have resigned if the presidential election led to a change in the party.

Gary Gensler in Securities and Exchange Commission and Cryptocurrency

Gary Gensler, the current chairman of the SEC, was nominated for the position on February 3, 2021, on Joe Biden’s recommendation. The U.S. Senate confirmed his position on April 14, 2021, and he accepted all his responsibilities and joined the office on April 17, 2021.

Before accepting the position at SEC, he served in various positions related to economics and other streams related to industry.

His term as SEC chair will end in April 2024. So, it is in discussion these days whether he will be continuing his position for the next term, resigning, or waiting for the election results.

Will Gensler follow the trend of resignation?

According to MetaManLaw, if Trump becomes the next President of the USA, there can be some resistance from the appointed authorities, like Gensler.

However, there has been no evidence in the past where a president has removed an SEC commissioner with a cause in the scenario of a change of government.

The same is expected in the next term if the governing body changes. 

The importance of this Discussion

He expects that there will be numerous legal cases pending at the end of 2024 against crypto. So, this change in the SEC will have a significant impact on the decisions in the pending cases. 

The new chairperson, who has a 60/40 majority, will change the settlement of the cases and their reasonable terms. There will be dismissals of cases where the SEC, under Gary, has taken positions that contradict existing securities law.

Hester Pierce is expected to be selected as interim chairperson. She is fully dedicated to speeding up the decision in these cases. 

After the post by MetaLawMan, there have been sudden reactions from crypto enthusiasts. Most of them were in favor of the removal of Gary Gensler.

Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.