With Donald Trump emerging victorious in the 2024 elections, all eyes are now on the Securities and Exchange Commission [SEC] Chair position. Trump has pledged to fire current Chief Gary Gensler on day one.
Gensler was appointed by Joe Biden as the Chairman on April 17, 2021. His term is set to expire on Jan. 5, 2025.
That being said, it should be noted that premature resignations have time and again materialized post election results in the past.
If the footsteps of history were to be followed this time around, Americans would have to wait for at least another month for Gensler to step down. In the worst-case scenario, a little over two months.
However, if Trump ends up firing Gensler, he will have to chalk out a detailed cause for dismissal. That could revolve around the lines of inefficiency, neglect, etc.
Nevertheless, even after doing so, the legal proceedings and administrative reviews could take several months.
Top names
Dan Gallagher
Robinhood’s Chief Legal Officer is currently the top contender. It’s interesting to note that he was a Republican Commissioner from 2011 to 2015 when Barack Obama was in power.
Gallagher has also assumed several SEC roles in the past. He recently asserted,
"I care deeply about the agency, and my hope for any new SEC Chairman would be that they foster access to the markets, and ensure the US remains at the forefront of financial innovation."
Gallagher’s path to the throne will not be straightforward because appointing industry leaders as regulators has always been a controversy-attracting magnet.
Alongside, Robinhood’s history associated with GamsStop further puts Gallagher on a slippery slope.
Hester Pierce
‘Crypto Mom’ is the industry’s favorite contender. Her crypto-friendly stance blends well with the approach that Trump aims to spearhead.
As far as credentials are concerned, she has served as the Staff Attorney in the SEC’s Division of Investment Management and has advised the Senate Committee on Banking, Housing, and Urban Affairs.
Pierce has also worked as an Associate at WilmerHale.
That being said, it shouldn’t be forgotten that Pierce has highlighted in the past that she doesn’t intend to continue after her term ends in 2025. A couple of years back she claimed,
"I really think 2025 is back to Ohio. I have a dream of becoming a beekeeper. I love it."
Paul Atkins
Former SEC Commissioner under former President George Bush is yet another potential candidate. He is known for opposing heavy fines on companies violating securities laws.
Commenting on the current state of affairs and what needs to be done going forward, Atkins recently said,
“It’s a mess right now over there. I think a lot of work needs to be done. There needs to be a change of course.”
Heath Tarbert
Tarbert is another contender in the SEC Chair race. He served as the Commodity Futures Trading Commission [CFTC] Head from 2019 to early 2021.
Under his leadership, the agency ended up clinching several records. One among them was handling the most cases in a fiscal year.
Tarbert has also worked in the White House, Department of Justice, and Treasury Department. At the moment, he serves as the Chief Legal Officer and Head of Corporate Affairs for Circle.
Chris Giancarlo
Another former CFTC Head is also part of the contender list. Interestingly, Giancarlo has penned ‘CryptoDad: The Fight for the Future of Money.’
He green-flagged trading of Bitcoin futures contracts when he was in power the last time.
The former regulator has also held board and advisory positions with the American Financial Exchange, the Chamber of Digital Commerce, and Nomura Holdings.
‘CryptoDad’ is also the Founder and Director of The Digital Dollar Project. Via this initiative, he and his team are looking for ways to “future-proof” the US dollar.
Robert Stebbins
Another name floating around at the moment is that of Stebbins. He has served as the SEC’s Head Legal Officer in the past and has overseen more than 2500 enforcement actions.
Stebbins currently leads Willkie Farr and Gallagher’s corporate governance practice. He has played a pivotal role in several significant transactions, including M&As of top firms.
Mark Cuban
The entrepreneur recently highlighted his interest in assuming the Chair position despite lacking the 'credentials' to do the job. He does not have experience in law or regulation per se.
He has criticized Gensler time and again, underlining how under his leadership crypto firms have fled overseas, thanks to ‘regulation through litigation.’
Cuban claimed,
“It’s not a job I will chase, but if asked, I would want to be interviewed.”
Bottom Line
No matter who ends up bagging the position, the crypto community seems to be delighted that Gensler will soon not be a part of the equation.
Coinbase executive Brian Armstrong recently asserted,
“The next SEC chair should withdraw all frivolous cases, and issue an apology to the American people. It would not undo the damage done to the country, but it would start the process of restoring trust in the SEC as an institution.”
