In the few days following the conclusion of the US elections, the crypto industry has seen a strong reaction. The price of Bitcoin has reached a new all-time high and many are encouraged by Trump’s promises to support the industry while on the campaign trail.
However, in the lead-up to the inauguration, speculation abounds regarding who will be in Trump’s cabinet and how this will affect the crypto space. More specifically, there is a lot of talk about how the Securities and Exchange Commission (SEC) could see a change in leadership.
Trump’s Plans For the SEC
It is worth noting that during the campaign phase, Trump promised to fire current SEC Chair, Gary Gensler. The commission and the crypto space have had a notoriously contentious relationship over the years that continues to this day. During the Initial Coin Offering (ICO) boom, the SEC went after a horde of businesses that failed to register before launching.
Besides this, it took several years of back-and-forth before a spot crypto ETF was approved for Bitcoin and Ether earlier this year. Then there are countless lawsuits that have seen everyone from Coinbase to Binance to Ripple Labs taken to court by the commission. It is also worth noting that this happened as a record number of people were entering the crypto space. Take the use of crypto for gambling, for example. It was mostly unheard of a decade ago but now, the iGaming space is seeing more people placing wagers with crypto. With the number of online casinos accepting crypto on the rise and the number of people looking to profit from them, the stakes are much higher. Then you consider the record number of active crypto wallet addresses and the institutions backing digital assets and the number of people who need the industry to succeed is immense.
The Next SEC Chair?
Overall, there is the sense that the commission, and Gensler by extension, is hostile towards the industry and needs to go. Luckily for those who think that way, Trump has promised to fire Gensler once in office.
Now that victory is confirmed, many are looking to Hester Pierce, who currently holds a position at the SEC, to succeed Gensler. She is often referred to as ‘Cryptomom’ because of her pro-crypto stance and criticism of Gensler’s approach to the industry. The way many see it, she has both the experience and the attitude to move the industry forward.
Still, it is worth noting that the process of removing an SEC chair and installing a new one won’t happen overnight. The president will have to give probable cause to fire the current chair and then begin the process of nominating a new leader for the commission.
Even with the long road ahead, many in the industry are not deterred. Brad Garlinghouse, the CEO of Ripple Labs (which is currently embroiled in a battle with the SEC) tweeted, following the announcement of the election results, “Fire Gensler. Day 1, no delays”.
