As Donald Trump wins the 2024 U.S. presidential election against Kamala Harris, all attention turns to Gary Gensler, the chair of the Securities and Exchange Commission (SEC), who is ousted as one of the key issues in the election for Trump.

Trump, in his trademark satirical style, vowed to fire Gensler on his first day in office, sending the cryptocurrency community into a frenzy. Trump also promised to replace Gensler with someone who would be more sympathetic to the cryptocurrency community in the U.S.

However, Trump faces significant legal hurdles: while he could remove Gensler from the chair position, technically he cannot "fire" him directly due to constitutional constraints that protect SEC members from arbitrary dismissal.

In this article, we will track Gensler's journey as SEC chair and how he emerged as the main villain of cryptocurrency, and who the top candidate may be to replace him.

Gensler's attack on the Crypto community

Gensler, who took office as SEC Chair in 2021, is a divisive figure, particularly in the cryptocurrency industry. His strict enforcement actions against major cryptocurrency exchanges like Coinbase and Binance have made him one of the least favored regulators in the cryptocurrency community. Since his appointment, Gensler has argued that many cryptocurrency platforms operate illegally under federal securities laws and has pushed for stricter regulatory measures, which the industry sees as hostile and stifling.

Under Gary Gensler's leadership, the SEC has pursued lawsuits and investigations targeting companies selling unregistered securities, which has raised concerns among industry leaders and investors who hope for a more innovation-friendly regulatory approach. As a result, he has been criticized for imposing traditional financial standards on the newly emerging cryptocurrency space, a move that many believe could drive innovation and capital out of the United States and into cryptocurrency-friendly jurisdictions like Singapore and Switzerland.

Trump's Vision: Turning the U.S. into the cryptocurrency capital

Trump, positioning himself as a pro-crypto candidate, has openly pledged to make the U.S. the center of cryptocurrency innovation. In contrast to Gensler's heavy enforcement approach, Trump has spoken about establishing a new advisory board focused on digital assets and has even hinted at policies that could make the U.S. the "cryptocurrency capital of the world." Such a move would align with a global shift as governments increasingly view cryptocurrency as an economic and technological opportunity rather than a regulatory burden.

In his statements, Trump emphasized the importance of "decentralized finance" and hinted at policies encouraging cryptocurrency innovation while providing oversight to prevent fraud. His promises have resonated with entrepreneurs, investors, and cryptocurrency companies, who see Gensler's policies as barriers to progress.

Potential successor: Who could replace Gensler?

If Trump removes Gensler, there are rumors that several candidates are being considered for the position of SEC Chair, each with different management philosophies and industry backgrounds:

1. Hester Peirce

Known as "Crypto Mom" in the cryptocurrency world, Peirce is the current SEC Commissioner and a strong advocate for clearer, innovation-friendly regulations. She has repeatedly challenged Gensler's strict approach, advocating for regulatory frameworks that encourage growth in the digital asset industry.

Hester Pierce is the top choice of the cryptocurrency community to replace Gary as SEC Chair.

2. Brian Brooks

Former Acting Comptroller of the Currency, Brooks has a history in the cryptocurrency field and is highly respected for his efforts to integrate digital assets into traditional finance. He is likely to pursue a more hands-off management style, advocating for the development of cryptocurrency. Brooks is a very strong candidate for the SEC Chair after Gensler vacates his seat.

3. Chris Giancarlo

Former CFTC Chair and co-founder of the Digital Dollar Project, Giancarlo is a proponent of blockchain technology and central bank digital currencies (CBDCs). His experience in both government cryptocurrency initiatives and the private sector could bridge the gap between traditional money.

The cryptocurrency community supports him as the next chair of the Securities and Exchange Commission because he approved the listing of bitcoin futures on CME during his term at CFTC.

4. Paul Atkins

As a former SEC Commissioner under President George W. Bush, Atkins is supported by many in Trump's circle for his conservative approach to financial regulation.

Atkins has previously opposed heavy penalties and supports policies that promote free markets, a stance that aligns with Trump's deregulation ambitions.

He also co-chairs a pro-crypto group, the Token Alliance, and runs a for-profit cryptocurrency consulting firm, Patomak Global Partners.

5. Dan Gallagher

Former SEC Commissioner and now legal staff at Robinhood, Gallagher has expressed criticism of overregulation. His background suggests he would align with the Trump administration's preference for a less interventionist approach to the market.

6. Chris Brummer

As a professor at Georgetown Law with ties to both parties, Brummer's focus on balanced regulation could make him a bipartisan choice if Trump is willing to compromise. He has experience in digital asset regulation and is seen as someone who can reconcile innovation advocacy with consumer protection.

The impact of replacing Gary Gensler

Replacing Gensler with a cryptocurrency-friendly SEC Chair could completely reshape the regulatory landscape for digital assets in the U.S. This change could reverse some lawsuits and regulatory pressures targeting exchanges and cryptocurrency products. With an estimated $1 trillion in cryptocurrency market capitalization affected by Gensler's regulatory stance, this change could attract more domestic investment and innovation, potentially positioning the U.S. as the leading global hub for cryptocurrency adoption and development.

However, any new SEC Chair will need to navigate the agency's core mission of protecting investors. Critics argue that loosening regulations too much could expose retail investors to undue risks in the highly volatile and sometimes fraudulent cryptocurrency market. Balancing innovation and oversight will be crucial for any new SEC Chair, as they will need to ensure both cryptocurrency advocates and cautious lawmakers are satisfied.

Conclusion: A turning point for U.S. cryptocurrency policy?

Trump's proposal to replace Gensler, although legally complex, signals a larger shift in how the U.S. government might approach cryptocurrency if he returns to power. For the cryptocurrency industry, this could mark a turning point, potentially providing a more supportive legal environment for growth and innovation rather than enforcement.