Who will be the new chairman of the SEC after Gary Gensler?

Author: Cointelegraph

Compiled by: Wenser, Odaily Planet Daily

Editor’s Note: The voting activities for the U.S. presidential election are in full swing, and the key position of SEC Chairman has once again become the focus of the cryptocurrency industry.

Considering the current political landscape in the U.S. and past popular candidates, Cointelegraph has selected 8 prominent contenders who may succeed the current SEC Chairman Gary Gensler as the "next SEC Chairman." Odaily Planet Daily will summarize this in the article, with some content edited for reader reference.

8 Major Contenders Competing for the Next SEC Chairman Position

Currently, the next SEC Chairman candidate remains undecided, with 8 individuals potentially taking on this critical role. On April 17, 2021, U.S. President Biden appointed Gary Gensler as the Chairman of the Securities and Exchange Commission (SEC), and according to customary practice, his term will last until January 5, 2026. However, due to Gensler's previous direct interventions in the U.S. cryptocurrency industry and his high-pressure measures lacking clear regulatory guidelines, he is at risk of losing his position.

Former U.S. President and Republican presidential candidate Donald Trump has previously stated at the 2024 Nashville Bitcoin Conference that if elected, he would fire Gary Gensler on "his first day in office."

Of course, the U.S. President has the authority to dismiss Gensler, but it is not an easy task. If Trump wants to do this, he must provide justifiable reasons for the dismissal, such as Gensler's negligence, inefficiency, or other forms of misconduct, and determining specific reasons, conducting legal reviews, and administrative transitions may take more than a year.

If Trump is elected President in 2024, he may have to work with Gensler for a period before the new SEC Chairman takes office. Naturally, if this happens, Gensler's resignation would not be surprising, but that entirely depends on Gensler himself.

On the Democratic side, Vice President and presidential candidate Kamala Harris has not formally stated her position on the SEC Chairman role, but there are indications that the position may change to allow for a shift in regulatory direction. Billionaire Mark Cuban claimed to have had close contact with Harris's team, telling the media that Harris tends to favor "clear regulatory rules" and opposes "regulation through litigation." He believes that if Harris is elected, she may dismiss Gensler, stating, "I think the obvious question is, given his low public approval ratings, I would guess he would resign voluntarily."

As of now, Gensler's potential successors remain uncertain, with Republicans generally favoring innovation and less restrictive regulatory approaches, while Democrats tend to favor stricter regulation and investor protection. The appointment of the next SEC Chairman may set the tone for future cryptocurrency regulation, and the industry is highly focused on the question of "what the new SEC Chairman's initial actions will be."

Thus, the focus shifts to------who will succeed Gensler, and what stance will they take towards the cryptocurrency industry?

1. Hester Peirce------The "Crypto Mom" Expected by the Industry; Probability: Low

SEC Commissioner Hester Peirce is considered one of the strong contenders to succeed Gensler. Given her potential to implement comprehensive crypto-friendly regulatory policies as SEC Chairman, combined with Trump's clear support for cryptocurrencies, these factors make her one of the most ideal candidates.

Peirce studied 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 a lawyer in the SEC's Investment Management Division and a partner at WilmerHale law firm. After being nominated by former President Obama as an SEC Commissioner in 2018, she officially joined the SEC.

She may be the most favored regulator among cryptocurrency supporters, with many referring to her as the "Crypto Mom."

Previously, she has criticized Gensler's aggressive stance towards the cryptocurrency industry multiple times: the most recent instance occurred on September 16 of this year, where she and Commissioner Mark Uyeda wrote in a dissenting opinion on a cryptocurrency case: "It is a significant mistake to let cryptocurrency issues fall into endless misguidance and overreach, and this mistake continues."

Her public support for the crypto industry and criticism of the SEC's regulatory methods have led many members of the cryptocurrency community to hope that Trump will choose her to succeed Gensler.

However, she is unlikely to become SEC Chairman, as she has previously indicated to industry media that she does not plan to stay 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 Commodity Futures Trading Commission (CFTC), J. Christopher Giancarlo is popularly referred to as the "Crypto Dad" due to his popularity in the cryptocurrency industry. Later, he accepted this nickname in his book "Crypto Dad: The Fight for the Future of Money." According to a previous report by Politico here, many in the U.S. industry lobbying firms consider Giancarlo a strong contender for SEC Chairman.

During Trump's presidency, he approved the trading of Bitcoin futures contracts while serving as CFTC Chairman, which was one of the necessary steps for the approval of Bitcoin spot ETFs.

Currently, Giancarlo is a senior advisor and co-chair of the digital working practice at Willkie Farr and Gallagher law firm, while also holding other positions in various organizations. Meanwhile, he is the founder and director of the "Digital Dollar Project," which aims to explore methods for "dollarization."

Additionally, his resume in the financial and digital asset fields includes serving as a board member and advisor at the U.S. Financial Exchange, the Digital Chamber of Commerce, and Nomura Holdings.

"Crypto Dad"

3. Chris Brummer: The Moderate Choice for Democrats; Probability: High

If Harris becomes the next U.S. President, Chris Brummer may play an important role in her administration.

Brummer has multiple connections to the Democratic Party------Obama nominated him to head the CFTC in 2016, but Trump later withdrew that nomination; during the Biden administration, he became a popular candidate for CFTC Chairman; Brummer is also one of the volunteers on Biden's Treasury regulatory transition team.

Anderson P.C. law firm believes that if he is appointed as SEC Chairman, it may signal a more moderate regulatory approach towards cryptocurrencies from the U.S. government, with a focus on establishing clear guidelines rather than stifling innovation.

Brummer has some experience in cryptocurrency regulation. On May 16 of this year, he founded a company focused on regulatory compliance for cryptocurrency companies (especially ensuring that crypto project whitepapers comply with EU cryptocurrency regulations) called Bluprynt.

A source familiar with Brummer believes he is "more qualified than Gary Gensler to be SEC Chairman," and stated that this could be "the maximum peaceful resolution that Harris's campaign team can propose regarding cryptocurrencies."

"The Man More Qualified Than Gary to Be SEC Chairman"

4. Paul Atkins: SEC Commissioner with Ties to Bush and Trump; Probability: Low

According to CNBC, former SEC Commissioner Paul Atkins from the George W. Bush administration has become a potential candidate for SEC Chairman within Trump's team.

As an SEC Commissioner during the Bush administration, he was known for opposing "imposing hefty fines on companies violating securities laws"; he previously expressed opposition to the Dodd-Frank Act, which strengthened federal regulatory powers after the 2008 financial crisis.

Atkins played a key role in Trump's political transition team after his election in 2016, significantly influencing Trump's laissez-faire attitude towards financial regulation.

Currently, Atkins remains with the consulting firm Patomak Global Partners, which he founded in 2009. Additionally, since 2017, he has served as co-chair of the Token Alliance, an industry association advocating for digital assets and blockchain.

"The Man Who Can Influence Trump"

5. Erica Williams: A Neutral Candidate from the Harris Faction; Probability: Medium

In terms of collaboration with the SEC, Erica Williams, Chair of the Public Company Accounting Oversight Board (PCAOB), has extensive experience.

She has held several important positions in government------including Deputy Chief of Staff for three SEC Chairmen, Special Assistant and Advisor for Financial and Economic Policy in the Obama administration, and a litigation partner at Kirkland and Ellis law firm before joining the PCAOB.

During her leadership at PCAOB, the board imposed a record $25 million fine for "KPMG Netherlands cheating in internal training programs" and a $900,000 fine for "quality management violations at Deloitte's Colombia branch," with the total fines in 2023 exceeding $20 million.

Although Erica herself has not made any clear statements regarding the cryptocurrency industry, during her tenure, PCAOB established an investigative team focused on emerging audit risks (including cryptocurrency-related risks). Previously, Erica faced criticism for overlooking deficiencies before the collapse of FTX at the end of 2022. Regarding this matter, she clarified at a meeting in November 2022: "PCAOB's jurisdiction is limited to the audit management of publicly traded companies and broker-dealers."

An insider revealed that Erica has a strong interest in advancing financial regulation, which may mean she would support cryptocurrency legislation while actively pursuing illegal activities in the cryptocurrency sector.

"Pro-Gary Gensler Faction"

6. Heath Tarbert: Active CFTC Chairman; Probability: Low

According to a previous report by CNBC here, 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 processed in a single fiscal year.

Tarbert has worked in various federal government departments, including the White House, the Department of Justice, and the Department of Treasury, and has extensive political experience. Of course, he became embroiled in significant controversy------because just 27 days after leaving the CFTC, he was hired by Citadel Securities as Chief Legal Officer, sparking 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 Facilitator"

7. Robert Stebbins: Advisor Closely Connected to Trump's SEC Chairman; Probability: Medium

According to Politico, several industry experts are considering Robert Stebbins as a potential candidate for SEC Chairman.

Stebbins worked at Willkie Farr and Gallagher from 1993 to 2017 before joining the SEC as Chief Legal Officer.

According to Willkie's website, during his tenure as SEC General Counsel, Stebbins played a key role in up to 85 rulemakings, hundreds of staff appointments, interpretive releases, and overseeing more than 2,750 enforcement actions. When Trump's former law school classmate and SEC Chairman Jay Clayton took office in 2017, he assisted in forming the latter's team.

Additionally, Stebbins has collaborated with financial giant Morgan Stanley on several significant transactions, including the $27.8 billion "Amgen Acquisition of Horizon Therapeutics" and the proposed merger between "Allergan and Pfizer." He was also involved in bidding for Fiat Chrysler's acquisition of a majority stake in Chrysler in the early 2010s.

"One of Trump's Faction Members"

8. Dan Gallagher: Critic of the Federal Reserve; Probability: Low

Robinhood's Chief Legal Officer Dan Gallagher is exceptionally familiar with the SEC------during the Obama administration, he served as a Republican committee member from 2011 to 2015 and held multiple positions at the agency.

In the late 2000s (around 2010), Gallagher played a significant role in the SEC's Trading and Markets Division, serving on the commission during the Lehman Brothers liquidation process and addressing a series of challenges during the financial crisis.

He is known for his highly controversial dissenting opinions and has criticized the Federal Reserve and the "Dodd-Frank Act." He has also advocated for a comprehensive review of trading practices in the U.S. stock market.

It is worth noting that Gallagher faces some potential obstacles to becoming a candidate. Democrats typically take a cautious approach when appointing industry leaders to regulatory positions, and Robinhood's past controversies------such as the decision to suspend trading of GameStop stock during the "Meme Stock Frenzy" in 2021------may affect his candidacy.

Whether Gallagher is willing to leave Robinhood to take the SEC position remains uncertain. He joined the company's board in October 2019 and became Chief Legal Officer in May 2020; he 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"