According to a report by the foreign media outlet "Unchained" citing information from two people familiar with the matter, the campaign team of U.S. Democratic presidential candidate Kamala Harris is reviewing potential candidates to replace the controversial current chair of the U.S. Securities and Exchange Commission (SEC), Gary Gensler.
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ToggleKamala Harris's Two SEC Chair Candidates
The report indicates that Georgetown University Law School professor Chris Brummer and Public Company Accounting Oversight Board (PCAOB) chair Erica Williams are the two most likely potential candidates. It is said that these two individuals have a more crypto-friendly outlook than Gary Gensler.
Chris Brummer founded a company called Bluprynt this spring, focusing on regulatory compliance for cryptocurrency companies, especially under the framework of the European cryptocurrency regulation MiCA. A source familiar with Chris Brummer, but unsure if he is being reviewed for the SEC chair position, said:
"From a credentials standpoint, Chris Brummer is more suitable to be the chair than Gary Gensler, and he would be the biggest olive branch the Harris campaign could extend to the crypto community."
As PCAOB chair, Erica Williams' main job is to work with the SEC to protect investors, oversee the companies that prepare audit reports, set auditing standards, and investigate and punish companies that violate these rules and laws.
A source said that both Chris Brummer and Erica Williams have a progressive financial regulatory vision and will support cryptocurrency legislation, but will also strictly pursue illegal activities in the field. They also added that these two are known for their amiable work attitudes, in contrast to Gary Gensler, who many of his direct reports find difficult to work with.
However, Unchained also emphasized in the report that Kamala Harris has not publicly or privately promised to replace Gary Gensler, and it is currently unclear whether she is seriously considering this issue. A source said:
"It's unclear who the frontrunners are. The Harris campaign team is concerned that being too pro-crypto before the election could cost her votes from progressive voters who see crypto as a 'scam,' without winning over new swing-state voters."
A spokesperson for the Harris campaign also stated:
"The transition team will not make any personnel appointments before the election, our current focus is on building the necessary infrastructure to be prepared."
The Republican Party's Potential Choices
On the other hand, Republican candidate Trump had previously promised that if elected, he would fire the SEC chair on his first day in office. Reports indicate that Robinhood's general counsel Dan Gallagher is the best candidate for the Republicans to appoint as the next SEC chair.
Dan Gallagher's background gives him sufficient experience to take on this position. He served as a Republican SEC commissioner during the Obama administration and also served as an advisor to several Republican appointees during the Bush presidency. Now, he is leading some of Robinhood's cryptocurrency projects in the face of regulatory headwinds.
When asked to comment, Dan Gallagher said:
"I am honored to be mentioned in the discussion of who might become the next SEC chair. I care deeply about the agency, and my hope for any new SEC chair is that they will promote market access and ensure America remains at the forefront of financial innovation."
Although it is currently unclear whether the president has the legal basis to "fire" the SEC chair directly. However, there is a broad legal consensus that the president can demote the chair to a commissioner, and historically, when a new president takes office, the chair usually resigns voluntarily, and many believe the former chair is unlikely to choose to remain in the less powerful commissioner position.
