Gensler’s SEC Exit Planned for January 2025 as Replacement Search Begins

TLDR

• Gary Gensler will resign as SEC Chair on January 20, 2025, coinciding with Donald Trump taking office following his election victory
• Top potential replacements include SEC Commissioners Hester Peirce and Mark Uyeda, Robinhood CLO Dan Gallagher, former CFTC Chair Chris Giancarlo, and former Binance.US CEO Brian Brooks
• Both Gallagher and Giancarlo have publicly stated they do not want the position
• The change in SEC leadership is expected to shift the agency’s stance on cryptocurrency regulation
• Teresa Goody Guillén, a former SEC litigator and current crypto-focused lawyer, has emerged as a potential candidate under consideration by Trump’s transition team

Securities and Exchange Commission (SEC) Chair Gary Gensler announced his upcoming resignation, setting the stage for a potential shift in U.S. cryptocurrency regulation. Gensler will depart on January 20, 2025, coinciding with Donald Trump’s return to the White House following his recent election victory.

The announcement comes after Trump’s campaign promise made at a Bitcoin conference in Nashville last July, where he declared, “I will fire Gary Gensler on day one.” The eventual resignation makes the firing unnecessary, but it aligns with Trump’s stated intention to end what he called “Biden and Kamala Harris’ anti-crypto crusade.”

Several candidates have emerged as potential replacements for the top regulatory position. Among them is SEC Commissioner Hester Peirce, nicknamed “Crypto Mom” for her supportive stance toward the digital asset industry.

Peirce, appointed in 2018, has consistently opposed the SEC’s aggressive approach to cryptocurrency regulation, recently describing the agency’s actions as “misguided and overreaching” in a September dissent regarding an NFT enforcement action.

Mark Uyeda, another Republican SEC Commissioner appointed in 2022, has also been mentioned as a possible successor. Jake Chervinsky, chief legal officer at Variant Fund, suggests Uyeda has “decent odds” at securing the position, though he notes Trump might prefer bringing in an outsider.

Dan Gallagher, currently serving as Robinhood’s Chief Legal Officer, emerged as another potential candidate. With experience as an SEC commissioner from 2011 to 2015, Gallagher has been vocal about the need for clearer digital asset regulation at the federal level. However, Gallagher recently removed himself from consideration, stating explicitly that he does not wish to be considered for the position.

Former Commodity Futures Trading Commission (CFTC) Chairman Chris Giancarlo, known as “Crypto Dad,” has also been mentioned as a possible replacement. Under Giancarlo’s leadership, the CFTC approved bitcoin futures on the Chicago Mercantile Exchange.

However, like Gallagher, Giancarlo has publicly declined interest in the role, stating he had “already cleaned up an earlier Gary Gensler mess” and didn’t want to do it again.

Brian Brooks, former acting comptroller of the currency and previous CEO of Binance.US, represents another potential candidate. Brooks brings experience from both government service and the cryptocurrency industry, having served as chief legal officer for Coinbase from 2018 to 2020. His tenure at Binance.US lasted four months, ending due to “differences over strategic direction.”

A newer name in the conversation is Teresa Goody Guillén, a former SEC litigator now co-leading the blockchain team at BakerHostetler. According to reports, Trump’s transition team has considered Guillén for the role. She has previously criticized the SEC’s cryptocurrency regulatory framework, noting it creates confusion for market participants.

The leadership change comes at a crucial time for cryptocurrency regulation in the United States. The SEC under Gensler’s leadership has pursued numerous enforcement actions against major industry players, including Coinbase and Binance.US. Both exchanges face ongoing SEC lawsuits alleging regulatory violations.

Howard Lutnick, Chairman and CEO of Cantor Fitzgerald and co-chair of Trump’s transition team, may influence the selection process. Reports suggest Lutnick views Wall Street as a prime source for top cabinet positions, potentially affecting the final choice for SEC chair.

Ripple Labs CEO Brad Garlinghouse has publicly endorsed several candidates, including Gallagher, Brooks, and Giancarlo, stating they would be “massive upgrades in rebuilding the rule of law (and reputation) at the SEC.”

John Stark, a former SEC enforcement attorney and crypto skeptic, suggests the leadership change will mark the end of the SEC’s aggressive stance toward cryptocurrency. “Does this mean that the SEC’s war on crypto is over?” Stark asked. “I would say ‘absolutely,’ with a resounding ‘yes.’”

The SEC typically sees leadership changes during presidential transitions, with chairs often resigning to make way for new appointments. The president typically appoints an acting chair immediately, usually selecting the senior member of their party within the commission.

Gensler’s departure statement remained professional and focused on the agency rather than cryptocurrency policy. “The Securities and Exchange Commission is a remarkable agency,” he said in his announcement.