Trump Promised to Sack Gensler When He Becomes President

What fate lies ahead for the crypto naysayer—to be dismissed or will he step down?

Either way, Gary Gensler's time as SEC Chair may be nearing its end.

President-elect Donald Trump appears set to deliver on one of his most popular crypto pledges made earlier this year.

At a July conference for Bitcoin enthusiasts, Trump's vow to remove the head of the top US financial regulator drew overwhelming applause.

Surprised by the intensity of support, Trump's words were nearly lost in the crowd's cheers as he reiterated his stance on ousting Gensler, noting:

“I didn't know he was that unpopular.”

Following a decisive victory in Tuesday's election, Trump now has the power to follow through on this promise when he takes office in January 2025, potentially bringing a major shift to the SEC's regulatory approach.

Possible Names of Gensler's Replacement Making Rounds Fast

While Trump cannot directly fire Gensler without cause, he can remove him from his role as SEC Chair, paving the way for a new appointee.

Names of potential successors are already circulating ahead of Trump's inauguration on 20 January, and many rumoured candidates have crypto ties.

Notably absent is "Crypto Mom" Hester Peirce, an SEC commissioner known for her criticism of the agency's lawsuits against crypto firms.

Although her name has been floated by some in the industry, Peirce is reportedly uninterested in the role, preferring a quieter life in Ohio.

Other contenders include current SEC Commissioner Mark Uyeda; Dan Gallagher, Robinhood's chief legal officer; former CFTC Chair Chris Giancarlo; former Binance.US CEO Brian Brooks; Heath Tarbert, Citadel Securities' chief legal officer and ex-CFTC chair; and Robert Stebbins, former SEC general counsel.

The list remains fluid as the crypto sector eyes a more industry-friendly replacement for Gensler.

Though appointed by President Biden, Gensler's term technically runs through 2026, with an additional 18-month buffer.

Historically, SEC chairs have often resigned when the White House shifts to an opposing party, but Trump could demote Gensler to commissioner immediately, allowing a new chair to assume leadership.

Potential Future SEC Chair

Former SEC enforcement attorney and crypto skeptic John Stark recently voiced support for Hester Peirce as a potential SEC Chair via X spaces:

“Most of the time, they just resign because they know that a new chair is going to be appointed. The president will then immediately appoint someone to be acting chair, and that will usually be the senior member of that party.”

Since her appointment in 2018, Peirce, a vocal critic of the agency's aggressive stance on crypto enforcement, has regularly opposed its litigation-heavy approach, calling it "misguided and overreaching.”

Her September dissent in an NFT-related enforcement case highlighted her view that the SEC was pursuing unnecessary cases.

Peirce, one of two Republicans on the five-member SEC, might be considered, though Jake Chervinsky, Variant Fund's chief legal officer, doubts she's interested.

Peirce's Republican colleague, Mark Uyeda, appointed in 2022, is also in contention, while Robinhood’s Chief Legal Officer Dan Gallagher has been named as a strong candidate.

A former SEC commissioner, Gallagher recently testified before Congress on the need for clearer federal digital asset regulation.

Notably, Trump's transition team co-chair Howard Lutnick, CEO of Cantor Fitzgerald, may favor someone from outside the agency, Politico reports.

Industry leaders are also weighing in.

Ripple CEO Brad Garlinghouse has publicly backed Gallagher, as well as former CFTC Chair Chris Giancarlo, known as "Crypto Dad" for his supportive stance on digital assets.

During his CFTC tenure, Giancarlo spearheaded the approval of bitcoin futures on the CME and advocated a "Do No Harm" policy toward digital assets.

Another name in the mix is former Acting Comptroller of the Currency Brian Brooks, known for his work at Coinbase and a brief stint as Binance.US CEO.

Heath Tarbert, former CFTC Chair and Circle's chief legal officer, has also been suggested, while Robert Stebbins, a Willkie Farr partner and former SEC general counsel, stands as the sole candidate without a strong crypto industry background.

Should a Trump administration lead the SEC, Stark anticipates a shift in the agency's stance on digital assets, marking a potential departure from current policy:

“Does this mean that the SEC's war on crypto is over? I would say 'absolutely,' with a resounding 'yes.'"