As the U.S. presidential election approaches, speculation is growing about who will be the next SEC chairman. The current SEC chairman, Gary Gensler, who was appointed by Joe Biden in 2021, has been criticized for his strict regulatory stance, especially with respect to the cryptocurrency market. Under Gensler's leadership, several enforcement actions have been taken against major entities.
Therefore, the appointment of a new SEC chairman is expected to greatly impact the regulatory landscape, especially with regard to cryptocurrencies and digital assets. A change in leadership could lead to a shift in policy that could potentially create a more accommodative environment for digital assets.
It is worth noting that both major presidential candidates have stated that if elected, there will be a successor. Although Donald Trump promised the cryptocurrency community that he would fire the current chairman, Gary Gensler, on his first day in office, it will not be easy. But he has the power to demote him to commissioner immediately. However, who will be next?
Who might become SEC chairman in a Trump administration?
Notably, the industry’s ideal pick would be Commissioner Hester Peirce, who has publicly criticized Gensler’s strategy of regulating the industry through litigation rather than rulemaking.
She also appears to be a likely choice if Trump wins the White House because she was the most outspoken Republican on the committee under Gensler and the president typically nominates committee chairmen from his own party.
However, she is unlikely to become the next SEC chairwoman, as she will leave the office at the end of her term in June 2025. The commissioner earned the nickname “Crypto Mom” for her outspoken opposition to Gensler’s aggressive stance on cryptocurrencies.
Harris team is reviewing candidates to replace Gensler -
As part of Harris' transition plan, her team is reviewing candidates to succeed Gary Gensler as chairman of the U.S. Securities and Exchange Commission.
The two leading candidates being considered are Georgetown University law professor Chris Brummer and Erica Williams, current chairwoman of the Public Company Accounting Oversight Board (PCAOB), according to sources.
Notably, both candidates are reportedly more open to the evolving crypto landscape than Gensler.
Chris Brummer is known for his expertise in financial regulation, fintech and international governance, and has been a champion of innovation in financial markets. His appointment could mean a more balanced approach to cryptocurrency regulation, with a focus on setting clear guidelines without stifling innovation.
On the other hand, Erica Williams has extensive experience in auditing and regulatory oversight, having previously held leadership positions at the PCAOB. She also brings a practical perspective to the crypto market, advocating for policies that both maintain market integrity and promote growth in the digital asset industry.
Several other candidates are also being considered for the SEC chairmanship:
Brian Brooks, former acting comptroller of the currency and a prominent figure in the cryptocurrency space, has been recognized for his efforts to integrate digital assets into the traditional financial system.
Robinhood Chief Legal Officer Dan Gallagher would also be a strong contender for SEC chairman if Trump is re-elected president. However, he may face some obstacles as Democrats are generally very cautious about appointing industry leaders to regulatory positions, and Robinhood's past controversies (such as its decision to stop trading in GameStop shares during the 2021 meme stock frenzy) could cause trouble for his candidacy. In addition, it is unclear whether Gallagher would be willing to leave Robinhood for the SEC position.
Chris Giancarlo- Former CFTC Chairman, Giancarlo is known for his positive views on digital currencies and blockchain technology. He is nicknamed “Crypto Dad” due to his popularity in the crypto industry. Notably, during his tenure at the CFTC under the Trump administration, he approved the trading of BTC futures contracts, a necessary step towards a spot Bitcoin exchange-traded fund (ETF).
According to CNBC, Paul Atkins, who served as a commissioner of the U.S. Securities and Exchange Commission under former U.S. President George W. Bush, is also a potential candidate for chairman of the Securities and Exchange Commission under Trump.
Heath Tarbert served as head of the CFTC from 2019 to January 2021, and his experience makes him a potential candidate for SEC chairman. Under his leadership, the CFTC set several records, including the most cases settled in a single fiscal year. Tarbert has extensive experience in the federal government, having worked in the White House, the Justice Department, and the Treasury Department.
Robert Stebbins: Some industry experts also consider Robert Stebbins as a potential candidate for SEC Chairman.
