Will Trump oust SEC’s Gary Gensler? Crypto community awaits

• Trump vowed to fire SEC Chair Gensler, igniting regulatory hopes in the crypto community.
• Potential SEC successors may significantly shift crypto regulations, despite legal challenges.

The U.S. has elected its 47th president, Donald Trump, and his victory is stirring anticipation within the crypto community.

Will Trump fire Gary Gensler?

Trump’s earlier pledge at the 2024 Bitcoin [BTC] Conference to fire SEC Chair Gary Gensler has reignited hopes for regulatory change.

Gensler was seen by many crypto firms as an impediment to the industry’s growth.

Gensler’s tenure, marked by an aggressive stance, had driven significant financial support to Trump’s campaign as crypto firms hoped to secure a more favorable regulatory landscape.

There have been talks around Gensler going under investigation hours after Trump was elected. 

Source: Levi | Crypto Crusaders/X

While Trump’s promised removal of Gensler on “day one” remains uncertain in feasibility, a broader sentiment for change is evident.

For those unaware, here’s what Trump had promised at the conference, 

“On day one, I will fire Gary Gensler and appoint a new SEC Chairman. I didn’t know he was that unpopular. Let me say it again. On day one, I will fire Gary Gensler.” 

H had added, 

“The day I take the oath of office, Joe Biden and Kamala Harris’ anti-crypto crusade will be over.”

It is worth noting that Kamala Harris, during her campaign, indicated a shift toward a more balanced regulatory framework. This signaled potential change regardless of the political outcome.

Things are not that easy as it seems to be

Even though, Trump’s call to remove SEC Chair Gensler faces legal hurdles, as firing without cause contradicts Supreme Court precedent. Speculations are already building around possible successors.

As expected, several names have surfaced as potential candidates to take over the position following Trump’s inauguration on 20th January.

Among those being discussed are SEC Commissioners Hester Peirce and Mark Uyeda, who are known for their more industry-friendly approaches.

Others include Dan Gallagher, the chief legal officer at Robinhood; former CFTC Chair Chris Giancarlo, an advocate for blockchain innovation; and Brian Brooks, the former CEO of Binance.US. 

Each brings a unique regulatory experience and perspective that could signal a significant shift in the SEC’s approach to crypto.

Gensler’s next move

Therefore, with Trump’s plans for SEC leadership in view, Chair Gensler might consider stepping down before the new administration takes office in January.

Should he resign early, President Joe Biden could appoint a temporary chair from the current Democratic commissioners until Trump’s inauguration.

Trump would likely nominate an interim chair, potentially replacing Commissioner Caroline Crenshaw, who is due for renomination.

If Gensler fully exits the commission, a new commissioner would need to be nominated and confirmed. This adds further layers to the expected SEC shake-up.