Former U.S. President Donald Trump announced his victory yesterday (6th), but the official presidential election results will not be finalized until the Electoral College votes on December 17th, and the new U.S. President will be sworn in on January 20th next year.
There are still 74 days until Trump's inauguration, but the global crypto community is eager to know when SEC Chairman Gary Gensler will step down, as Trump publicly stated in late July that he would fire Gensler, who has long suppressed the crypto industry, on his first day as president to allow the Bitcoin and crypto industry to thrive.
Further Reading: Recap of Trump's "Full Support for Crypto" Promises: BTC Strategic Reserves, Firing SEC Chairman, No CBDC...
SEC Chairman Gary Gensler Refuses to Respond Whether He Will Resign
In this regard, Fox Business reporter Eleanor Terrett tweeted today that she contacted the SEC and asked Gary Gensler if he plans to end his tenure as the agency's chairman by the end of this year or resign before Trump's inauguration ceremony on January 1st, but the SEC spokesperson declined to comment.
Gensler's most vocal critics in the financial industry have called for his immediate resignation since yesterday's election. However, it is worth noting that while the President does not have the power to directly dismiss Gensler from the SEC, SEC chairmen typically follow the Washington tradition of resigning on or before the new President's inauguration day.
Under Trump's Administration, SEC Crypto Enforcement Will Be Significantly Reduced
According to a Bloomberg report, if Gensler resigns before Trump's inauguration, the agency will be split 2-2 along party lines (the SEC Commission is composed of 5 members, and no single party can hold more than 3 seats) until a new chairman is confirmed, which is expected to hinder the SEC's subsequent aggressive enforcement, especially with "Crypto Mom" Hester Peirce still serving as a commissioner. Peirce is also one of the top candidates predicted to be appointed as the new SEC chairman by Trump.
The industry expects that under a Trump administration, SEC crypto enforcement will be significantly reduced, and some SEC staff who have taken aggressive enforcement actions may be purged after the new SEC chairman appointed by Trump takes office.
A crypto industry executive said they expect Gensler may still want to prosecute companies that have received Wells Notices, such as Uniswap and OpenSea, but other enforcement cases are likely to slow down.
The industry executive said SEC staff have realized that the incoming new SEC chairman, who is likely to support Trump's "downsizing the federal government" policy, may have an unfriendly attitude towards taking radical actions in the few months before the leadership and policy changes.
Further Reading: How Will Trump Impact Crypto if He Wins the Election? These Three Friendly Figures May Become SEC Chairman and Bring Mass Adoption
Coinbase General Counsel: The New SEC Chairman Will Revisit the Crypto Cases Prosecuted During Gensler's Tenure
Fox Business reporter Eleanor Terrett wrote that Coinbase General Counsel Paul Grewal told her that he expects the number of crypto enforcement cases to see "significant changes" under the new chairman appointed by Trump, implying a significant reduction.
I believe the new administration will re-examine all the crypto cases prosecuted during Gary Gensler's tenure and distinguish which ones were against obvious fraud and which cases were not fraud.
While Grewal did not state that the prosecutions against Coinbase and other companies under investigation for alleged securities violations will be withdrawn, he seems confident that the change in SEC leadership and the establishment of clear rules will lead to a new review of these cases.
Grewal earlier called on the SEC, "Stop prosecuting crypto. Start talking about crypto. Start making rules now. There's no reason to wait."
