Original source: Cointelegraph
Translation: Odaily Planet Daily (@OdailyChina)
Translator: Wenser (@wenser2010)
Editor's note: The U.S. presidential election voting activities are in full swing (latest news: the vote counting data for the seven swing states will be released around noon on November 6), and the key position of SEC chair has once again become the focus of the cryptocurrency industry.
Considering the current political situation in the U.S. and past popular candidates, Cointelegraph has shortlisted 8 popular candidates, from whom the 'next SEC chairman' to succeed current SEC chairman Gary Gensler may emerge. Odaily Planet Daily will compile and summarize this article, with some content being edited for reader reference.
8 major candidates are competing for the position of the next SEC chair.
Currently, the next SEC chair candidate remains undecided, with 8 potential candidates vying for this key position. On April 17, 2021, President Biden appointed Gary Gensler as 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 the lack of clear regulatory guidelines, he is likely to be at risk of losing his position.
Former President of the United States and Republican presidential candidate Trump explicitly stated at the 2024 Nashville Bitcoin Conference that if elected, he would fire Gary Gensler 'on the first day' of his term.
Of course, the President of the United States has the power to dismiss Gensler, but this is not an easy task. If Trump wants to do this, he must provide legitimate grounds for dismissal, such as Gensler's negligence, inefficiency, or other forms of misconduct, and determining specific reasons, conducting legal reviews, and administrative transitions could take more than a year.
If Trump is elected as the President of the United States in 2024, he may have to work with Gensler for some time before the new SEC chairman takes office. Of course, if this happens, Gensler's resignation would not be surprising, but it entirely depends on Gensler himself.
On the Democratic side, Vice President and presidential candidate Kamala Harris has not officially expressed her stance on the SEC chair position, but there are signs 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 leans towards 'clear regulatory rules' and opposes 'regulation through litigation.' He believes that if Harris is elected, she may fire Gensler. He bluntly stated: 'I think the obvious question is, given the low public support, I guess he would voluntarily resign.'
As of now, Gensler's potential successors remain uncertain, with Republicans generally leaning towards supporting innovative, less restrictive regulatory approaches, while Democrats tend to favor stricter regulation and investor protection. The appointment of the SEC chairman is likely to set the tone for future cryptocurrency regulation, and there is high attention within the industry regarding 'what the new SEC chairman's initial actions will be.'
So, the focus of the discussion shifts to—who will succeed Gensler, and what stance will they take towards the cryptocurrency industry?
1. Hester Peirce — the 'crypto mom' that the industry is looking forward to; possibility: low
SEC Commissioner Hester Peirce is considered one of the strong potential contenders to replace Gensler. Given that she may implement comprehensive crypto-friendly regulatory policies as SEC chair, along 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. In 2018, she officially joined the SEC after being nominated by former President Obama.
She may be the most welcomed regulator among cryptocurrency supporters, with many calling her the 'crypto mom.'
Previously, she has repeatedly criticized Gensler's aggressive stance on the cryptocurrency industry: the most recent instance was 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 allow cryptocurrency issues to become mired in endless misinformation and overreach, and this mistake is ongoing.'
She publicly supports the crypto industry and criticizes the SEC's regulatory approach, leading many members of the cryptocurrency community to hope that Trump will choose her to succeed Gensler if elected.
However, she is unlikely to become SEC chair, as she has previously indicated to industry media that she does not intend to remain at the SEC after her term ends in 2025.
2. Chris Giancarlo: The 'crypto dad' of Bitcoin futures; possibility: high
As a lawyer and former chairman of the U.S. Commodity Futures Trading Commission (CFTC), J. Christopher Giancarlo is humorously referred to as the 'crypto dad' due to his popularity in the cryptocurrency industry. Later, he acknowledged this nickname in his book (Crypto Dad: The War for the Future of Money). According to a previous report by Politico, many in the U.S. industry lobbying community consider Giancarlo a strong contender for SEC chairman.
During Trump's administration, while serving as CFTC chairman, he approved the trading of Bitcoin futures contracts, which was one of the necessary steps for the approval of a Bitcoin spot ETF.
Currently, Giancarlo is a senior advisor at Willkie Farr and Gallagher and co-chair of the digital working practice, while also holding other positions in several organizations. Meanwhile, he is the founder and director of the 'Digital Dollar Project,' which aims to explore methods for 'dollar tokenization.'
Additionally, his resume in the financial and digital asset sectors includes roles as a board member and advisor at the U.S. Financial Exchange, the Digital Chamber, and Nomura Holdings.
3. Chris Brummer: The centrist choice of the Democrats; possibility: high
If Harris becomes the next President of the United States, Chris Brummer could become an important part of her administration.
Brummer has multiple connections with the Democratic Party—Obama nominated him to head the CFTC in 2016, but subsequently, Trump withdrew that nomination; during the Biden administration, he became a popular candidate for CFTC chair; Brummer was also one of the volunteers of the Biden administration's financial regulatory transition team.
The law firm Anderson P.C. believes that if he is appointed as SEC chairman, it may signal that the U.S. government will adopt a more lenient regulatory approach towards cryptocurrencies, shifting the focus of regulation towards establishing clear guidelines rather than stifling innovation.
Brummer has some experience in cryptocurrency regulation. On May 16 of this year, he founded a company focusing on compliance for cryptocurrency companies (especially focusing on ensuring that cryptocurrency project white papers comply with EU cryptocurrency regulations) called Bluprynt.
An insider familiar with Brummer believes he is 'more qualified than Gary Gensler to be SEC chair' and that this could be 'the maximum peaceful resolution proposed by Harris's campaign team towards cryptocurrencies.'
4. Paul Atkins: An SEC commissioner connected to Bush and Trump; possibility: 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 'imposing hefty fines on companies that violate securities laws'; previously, he had opposed the Dodd-Frank Act that 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 still serves in his consulting firm, Patomak Global Partners, which he founded in 2009. Meanwhile, since 2017, he has also served as co-chair of the Token Alliance, an industry association advocating for digital assets and blockchain.
5. Erica Williams: A neutral candidate from the Harris faction; possibility: medium
In terms of cooperation with the SEC, the chair of the Public Company Accounting Oversight Board (PCAOB), Erica Williams, has rich experience.
She has held several important positions in government departments— including deputy chief of staff for three SEC chairs, special assistant and advisor on financial and economic policy in the Obama administration, and before joining the PACOB committee, she served as a litigation partner at Kirkland and Ellis.
During her leadership of the PCAOB, the committee imposed a record $25 million fine for 'the Netherlands' KPMG accounting firm's cheating in internal training programs' and $900,000 for 'Deloitte's violation of quality management at its Colombia branch'; the total fines for the department in 2023 exceeded $20 million.
Although Erica herself has not made any clear statements regarding the cryptocurrency industry, during her tenure, the PCAOB established an investigation team focused on emerging audit risks (including risks related to cryptocurrencies). Previously, Erica faced criticism for ignoring flaws prior to the collapse of FTX at the end of 2022. Regarding this matter, she clarified in a November 2022 meeting: 'The PCAOB's jurisdiction is limited to the audit management of publicly listed companies and broker-dealers.'
An insider revealed that Erica has a strong interest in advancing financial regulatory progress, which may mean that she will support cryptocurrency legislation while actively pursuing illegal activities in the cryptocurrency sector.
6. Heath Tarbert: An active CFTC chair; possibility: low
According to a previous report by CNBC, Heath Tarbert's experience as CFTC chairman from 2019 to January 2021 makes him one of the potential candidates for the next SEC chairman. Under his leadership, the CFTC set several industry records, including the highest number of cases processed in a single fiscal year.
Tarbert has worked in several federal government departments, including the White House, the Department of Justice, and the Department of the Treasury, and has rich experience in politics. Of course, he once faced huge controversy—because just 27 days after leaving the CFTC, he was hired by Citadel Securities as chief legal officer, leading to criticism of the so-called 'revolving door phenomenon' of moving from public service to private companies.
Currently, Tarbert is the Chief Legal Officer and Corporate Affairs Officer of Circle, the issuer of the stablecoin USDC.
7. Robert Stebbins: An advisor closely related to Trump's SEC chair; possibility: medium
According to Politico, several industry experts are considering Robert Stebbins as a potential candidate for SEC chairman.
Stebbins himself worked at Willkie Farr and Gallagher from 1993 to 2017, before joining the SEC as chief legal officer.
According to information on Willkie's website, during his tenure as SEC General Counsel, Stebbins played a key role in up to 85 rulemakings, hundreds of employee appointments, the issuance of interpretive releases, and the supervision of more than 2,750 enforcement actions. When Trump's former law school classmate and SEC chairman during his presidency Jay Clayton took office in 2017, he assisted him in assembling his team. (Odaily Planet Daily note: For more information about Clayton, see the previous article (2024 SEC 'generated' $4.7 billion, is the cryptocurrency industry a 'cash cow'?).
Additionally, Stebbins has also collaborated with financial giant Morgan Stanley on several major deals, including the $27.8 billion 'Amgen acquisition of Horizon Therapeutics' and the 'proposed merger of Allergan and Pfizer'. He also participated in the bidding for Fiat's acquisition of a majority stake in Chrysler in the early 2010s.
8. Dan Gallagher: A critic of the Federal Reserve; possibility: low
Dan Gallagher, Chief Legal Officer of the financial trading company Robinhood, is exceptionally familiar with the SEC—during the Obama administration, from 2011 to 2015, he served as a Republican committee member and held several positions at the agency.
In the late 2000s (close to 2010), Gallagher played an important role in the SEC's trading and markets division, having served on the commission during the Lehman Brothers' liquidation process and engaged in a series of challenges during the financial crisis.
He is known for his controversial dissenting opinions and is critical of the Federal Reserve and the Dodd-Frank Act. He also advocates for a comprehensive review of trading practices in the U.S. stock market.
It is worth mentioning that Gallagher may face some potential obstacles in becoming a candidate. Democrats generally take a cautious attitude when appointing industry leaders to regulatory positions, and the past controversies surrounding Robinhood—such as the decision to suspend trading of GameStop shares during the 2021 'Meme stock frenzy'—may affect his candidacy.
It remains uncertain whether Gallagher is willing to leave Robinhood to take on an SEC position. He joined the company's board 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 listed as a potential candidate for the next SEC chairman.