Original Title: Meet the pro-crypto contenders who could replace SEC chief Gary Gensler
Source: Cointelegraph
Compiled by: Wenser, Odaily Planet Daily
8 Hot Candidates Competing for the Next US SEC Chairman Position
Currently, the candidate for the next SEC chairman is still undecided, with 8 people potentially taking on this key position. On April 17, 2021, US President Biden appointed Gary Gensler as the chairman of the Securities and Exchange Commission (SEC), and according to the norm of his term, he will serve until January 5, 2026. However, due to Gensler's direct intervention in the US cryptocurrency industry and his high-pressure measures without clear regulatory guidance, he is likely to lose his "black hat".
Former US President and Republican presidential candidate Trump has clearly stated at the 2024 Nashville Bitcoin Conference that if elected, he will fire Gary Gensler on "the first day" of his term.
Of course, the US President has the power to dismiss Gensler, but it is not an easy task. If Trump wants to do this, he must provide a legitimate reason for dismissal, such as Gensler's dereliction of duty, inefficiency or other forms of misconduct, and determining the specific reasons, conducting legal review and administrative transition may take more than a year.
If Trump is elected as the next US President in 2024, he may have to work with Gensler for a period of time before the new SEC chairman takes office. Of course, in this case, Gensler's resignation would not be unexpected, but it depends entirely on Gensler himself.
On the Democratic side, Vice President and presidential candidate Kamala Harris has not yet officially stated her position on the SEC chairman position, but there are signs that this position may change in order to leave room for a shift in regulatory direction. Billionaire Mark Cuban claimed to have had close contact with Harris' team, and he told the media that Harris tends to favor "clear regulatory rules" and opposes "regulation through litigation". He believes that if Harris is elected, Gensler may be dismissed. He bluntly said: "I suspect the obvious problem is, given his low public approval rating, I guess he will voluntarily resign."
So far, Gensler's potential successors are still uncertain, with Republicans generally favoring a more innovative and less restrictive regulatory approach, while Democrats generally favoring stricter regulation and investor protection. The appointment of the next SEC chairman may set the tone for future cryptocurrency regulation, and the industry is also highly concerned about "what the 'new sheriff in town' of the next SEC chairman will do".
So the focus of the topic becomes - who will take over Gensler's position, and what attitude will they take towards the cryptocurrency industry?
1. Hester Peirce - The "Crypto Mom" Anticipated by the Industry; Probability: Low
SEC Commissioner Hester Peirce is considered one of the potential strong contenders to succeed Gensler. Given that she is likely to implement a comprehensive crypto-friendly regulatory policy as SEC chairman, and Trump's clear support for cryptocurrencies, these factors make her one of the most ideal candidates.
Peirce has researched financial market regulation at George Mason University and served as an advisor to government departments such as the Senate Banking, Housing and Urban Affairs Committee. She was also an attorney in the SEC's Investment Management Division and a partner at WilmerHale law firm. In 2018, she was formally appointed to the SEC after being nominated by former President Obama.
She is likely the most welcomed regulator by cryptocurrency supporters, with many referring to her as the "Crypto Mom".
Previously, she has repeatedly criticized Gensler's aggressive attitude towards the cryptocurrency industry: the latest incident was on September 16 this year, when she and Commissioner Mark Uyeda wrote in a dissenting opinion on a cryptocurrency case that "it is a serious mistake to continue to lead the cryptocurrency issue into endless misinformation and excessive intervention, and this mistake is still ongoing."
Her public support for the cryptocurrency industry and criticism of the SEC's regulatory approach have led many members of the cryptocurrency community to hope that Trump's election will lead to her being chosen to replace Gensler.
However, she is unlikely to become the SEC chairman, as she has previously told industry media that she does not plan to remain at the SEC after her term ends in 2025.
"Crypto Mom"2. Chris Giancarlo: The "Crypto Dad" of Bitcoin Futures; Probability: High
As a lawyer and former chairman of the US Commodity Futures Trading Commission (CFTC), J. Christopher Giancarlo has been nicknamed the "Crypto Dad" for his popularity in the cryptocurrency industry. Later, he embraced this nickname in his book "Crypto Dad: The Fight for the Future of Money". According to a previous Politico report, many in the US industry lobbying community believe Giancarlo is a strong contender for the SEC chairman position.
During his tenure as CFTC chairman under the Trump administration, he approved the trading of Bitcoin futures contracts, which was one of the necessary steps before the approval of a Bitcoin spot ETF.
Currently, Giancarlo is a senior advisor and co-chair of the digital practice at Willkie Farr and Gallagher law firm, and holds other positions in various organizations. At the same time, he is the founder and director of the "Digital Dollar Project", which aims to explore methods for "dollarization" of the US dollar.
In addition, his resume in finance and digital assets also includes serving as a board member and advisor for US financial exchanges, the Digital Chamber, and Nomura Holdings.
"Crypto Dad"3. Chris Brummer: The Moderate Choice of the Democratic Party; Probability: High
If Harris becomes the next US President, Chris Brummer may become an important part of her administration.
Brummer has multiple connections with the Democratic Party - Obama nominated him to lead the CFTC in 2016, but Trump later withdrew the nomination; during the Biden administration, he was a volunteer on the financial regulatory transition team of the Biden government.
Anderson P.C. law firm believes that if he is appointed as SEC chairman, it may indicate that the US government will take a more peaceful regulatory approach to cryptocurrencies, with the focus shifting to developing clear guidance rather than stifling innovation.
Brummer has some experience in cryptocurrency regulation. On May 16 this year, he founded a company called Bluprynt, which focuses on regulatory compliance for cryptocurrency companies, especially ensuring that cryptocurrency project whitepapers comply with EU cryptocurrency regulations.
A source familiar with Brummer believes that he is "more qualified to be SEC chairman than Gary Gensler", and stated that this may be "the most peaceful resolution on cryptocurrencies that the Harris campaign team can propose".
"The Man More Qualified to Be SEC Chairman Than Gary"4. Paul Atkins: The SEC Commissioner with Connections to Bush and Trump; Probability: Low
According to CNBC, former SEC Commissioner Paul Atkins from the George W. Bush administration has become one of the potential candidates for SEC chairman in Trump's team.
As an SEC commissioner during the Bush administration, he was known for opposing "high fines for companies that violate securities laws"; previously, he had expressed opposition to the Dodd-Frank Act, which strengthened federal regulatory powers in the aftermath of the 2008 financial crisis.
Atkins played a key role in Trump's political transition team in 2016 after his election as president, and played an important role in influencing Trump's laissez-faire attitude towards financial regulation.
Currently, Atkins still holds a position at Patomak Global Partners, the consulting firm he founded in 2009. At the same time, since 2017, he has also served as co-chair of the Token Alliance, an industry association that advocates for the digital asset and blockchain industry.
"The man who can influence Trump"5. Erica Williams: A neutral candidate from the Harris faction; Possibility: Medium
In terms of working with the SEC, Erica Williams, the chair of the Public Company Accounting Oversight Board (PCAOB), has extensive experience.
She has held several important positions in government agencies, including deputy chief of staff to three SEC chairs, special assistant and advisor for financial and economic policy in the Obama administration, and litigation partner at Kirkland and Ellis before joining the PCAOB.
During her tenure at the PCAOB, the board imposed a record $25 million fine on PricewaterhouseCoopers Netherlands for cheating in an internal training program, and a $900,000 fine on Deloitte Colombia for quality control violations. The department's total fines exceeded $20 million in 2023.
Although Erica herself has not made any obvious statements on the cryptocurrency industry, during her tenure, the PCAOB established an investigative team focused on emerging audit risks, including those related to cryptocurrencies. Previously, Erica was criticized for overlooking the flaws of FTX before its collapse in late 2022. Regarding this, she clarified in a November 2022 meeting that "the PCAOB's jurisdiction is limited to the audit management of publicly traded companies and broker-dealers."
An internal source revealed that Erica has a strong interest in promoting financial regulatory progress, which may mean that she will not only support cryptocurrency legislation, but also actively pursue illegal activities in the cryptocurrency field.
"Gary Gensler faction"6. Heath Tarbert: Active CFTC chairman; Possibility: Low
According to a previous CNBC report, Heath Tarbert's experience as CFTC chairman from 2019 to January 2021 makes him a potential candidate for the next SEC chairman. Under his leadership, the CFTC set multiple industry records, including the highest number of cases handled in a single fiscal year.
Tarbert has extensive experience working in various federal government departments, including the White House, Department of Justice, and Department of the Treasury. Of course, he was once embroiled in a major controversy - just 27 days after leaving the CFTC, he was hired as chief legal officer by Citadel Securities, which sparked criticism of the so-called "revolving door phenomenon" from public service to private companies.
Currently, Tarbert is the chief legal officer and head of corporate affairs at Circle, the issuer of the stablecoin USDC.
The "revolving door pusher" who straddles politics and business7. Robert Stebbins: An advisor with close ties to Trump's SEC chairman; Possibility: Medium
According to Politico, several industry experts are considering the potential candidacy of Robert Stebbins for the SEC chairman position.
Stebbins himself worked at Willkie Farr and Gallagher from 1993 to 2017, and then joined the SEC as general counsel.
According to the Willkie company website, during his tenure as SEC general counsel, Stebbins played a key role in up to 85 rulemaking processes, hundreds of staff appointments, the issuance of interpretive guidance, and the oversight of more than 2,750 enforcement actions. When Jay Clayton, Trump's law school classmate and SEC chairman during his presidency, took office in 2017, Stebbins assisted him in assembling his team.
In addition, Stebbins has collaborated with financial giant Morgan Stanley on several important transactions, including the $27.8 billion "Amgen's acquisition of Horizon Therapeutics" and the "proposed merger of Allergan and Pfizer". He also participated in Fiat Group's bid to acquire a majority stake in Chrysler in the early 2010s.
"One of Trump's faction members"8. Dan Gallagher: A critic of the Federal Reserve; Possibility: Low
Dan Gallagher, the chief legal officer of financial trading company Robinhood, is exceptionally familiar with the SEC - during the Obama administration, from 2011 to 2015, he served as a Republican commissioner and held various positions within the agency.
In the late 2000s (around 2010), Gallagher played an important role in the SEC's trading and markets division, served on the committee during the Lehman Brothers liquidation process, and began to engage in a series of challenges during the financial crisis.
He is known for his highly controversial dissenting views, criticizing the Federal Reserve and the Dodd-Frank Act. He also advocated for a comprehensive review of stock market trading behavior.
It is worth noting that Gallagher's candidacy may face some potential obstacles. The Democratic Party is usually cautious about appointing industry leaders to regulatory positions, and Robinhood's past controversies, such as the decision to temporarily suspend GameStop stock trading during the 2021 "meme stock frenzy", may affect his candidacy.
It is currently unclear whether Gallagher is willing to leave Robinhood to take on the SEC position. He joined the company's board of directors in October 2019 and became chief legal officer in May 2020; he has told the media that he enjoys his current position and is honored to be considered a potential candidate for the next SEC chairman.
"An onlooker from the crypto industry"
