Written by: Web3 farmer Frank
Teresa not only understands traditional finance, but also has extensive experience in the field of Crypto law. Will she bring Crypto into Hengji?
On November 21, a piece of news was frozen on the official website of the U.S. SEC, and the crypto world cheered.
Gary Gensler may not have thought that encryption would make him successful or unsuccessful. Even though it was normal for him to leave in 26 years, he still decided to leave on the day Biden resigned and Trump took office.
Gary Gensler's merits and demerits in office will be judged by future generations. But in addition to the pressure from congressmen and institutions, the reason for his early resignation cannot be underestimated. "Crypto President" Trump once threatened to dismiss Gensler after taking office and appoint crypto-friendly blockchain legal expert Teresa Goody Guillén as the chairman of the US SEC.
So who exactly is Teresa Goody Guillén? Why has she garnered Trump's favor? If she takes the helm of the SEC, what different variables might she bring to the crypto industry?
Image source: SEC official website
The major shift in SEC crypto regulation during the 'Trump era'
Since April 17, 2021, the SEC under Gary Gensler has become synonymous with a 'big stick' approach in the crypto industry, which has almost permeated all major enforcement actions in recent years.
Whether it is the large-scale lawsuits against crypto exchanges Binance and Coinbase or the hardline stance of classifying most crypto assets as securities, in just three and a half years, the SEC has completed over 2,700 enforcement actions and accumulated over $21 billion in fines in the crypto industry.
As a former MIT professor who taught blockchain technology courses, Gary Gensler's iron-fisted regulatory policies have stirred up a storm in the crypto market, causing the high hopes that the crypto industry had at the beginning of his tenure to dissipate, leading to polarized evaluations and making him the most controversial figure in the crypto industry.
In the 2024 U.S. presidential election, Trump has become the hope of the crypto industry. Trump has repeatedly criticized Gary Gensler's crypto regulatory policies, even stating in public speeches that if elected president, he would remove Gary Gensler from his position on the first day of his term.
In the conception of Trump's reform plan, finding an SEC chairman who understands both traditional finance and the crypto industry is of utmost importance. This is why Teresa Goody Guillén, due to her unique cross-industry background and industry support, has gradually become a potential frontrunner for the new SEC chair: this seasoned securities law expert not only has extensive experience in traditional finance but also maintains close collaborative relationships with blockchain enterprises, having a deep understanding of the operational logic of the crypto industry.
Who is Teresa, the 'potential successor of the SEC'?
According to public information, Teresa Goody Guillén is currently a partner at the law firm BakerHostetler and co-head of the blockchain team. She joined in January 2019 and leads the team in handling legal matters related to blockchain technology and digital assets, accumulating rich practical experience in areas such as blockchain technology, digital assets (including NFTs), DAOs, and DeFi.
Image source: BakerHostetler official website
In addition, Teresa Goody Guillén also served as a litigation attorney in the SEC's Office of the General Counsel and held senior positions at Kalorama Partners, focusing on corporate compliance, risk management, and legal strategy consulting, as well as at The Goody Group LLC and Goody Counsel PLLC, providing legal and consulting services.
From 2009 to 2011, served as a litigation attorney in the Office of the General Counsel of the SEC, responsible for handling complex securities litigation and enforcement-related matters.
From 2011 to 2015, joined Kalorama Partners, founded by former SEC Chairman Harvey Pitt, serving as Chief Operating Officer and Managing Director, collaborating with Harvey Pitt to provide consulting services for SEC enforcement cases.
From 2015 to 2019, participated in the establishment of The Goody Group LLC & Goody Counsel PLLC and served as CEO.
This also showcases Teresa's unique cross-career background: her experience at the SEC has given her a solid foundation in traditional securities law, while her deep involvement in the blockchain field makes her a rare professional at the intersection of law and technology. Coupled with her teaching experience in academia, this further enhances her authority in the field of law and technology.
It is noteworthy that BakerHostetler has taken on several important blockchain-related cases in recent years and provided legal consulting services to multiple Web3 projects, with Teresa's team particularly skilled in helping startups navigate complex regulatory challenges, such as developing compliance strategies, responding to regulatory inquiries, and defending clients in litigation.
It is understood that the team led by Teresa has collaborated with well-known blockchain projects such as the decentralized 'AI Data Chain' Masa to assist in promoting the application of Web3 innovative technologies within the legal framework.
For a long time, Teresa herself has been seen as a 'friendly' figure in the crypto industry. She has pointed out on multiple occasions that the U.S. should adopt a more open attitude in formulating crypto regulations and provide a supportive framework for technological innovation instead of using a hard-line strategy of 'law by enforcement', a viewpoint that has earned her broad support from the Web3 community.
Will the SEC enter an era of 'full-speed embrace of crypto'?
From the current signs, Teresa's emergence as a frontrunner for SEC chair is not only due to her personal resume best fitting the comprehensive needs of a SEC chair in the 'Trump era', but also reflects a strong expectation from the market for a 'policy turnaround' in crypto regulation.
In the industry's view, she is an ideal candidate who can deeply understand traditional financial rules while supporting Web3 innovation. If she ultimately succeeds Gary Gensler, it may lead the SEC down a completely different path, injecting new vitality into the U.S. crypto industry.
It is known that one of the biggest obstacles currently facing the U.S. crypto industry is regulatory uncertainty. The (21st Century Financial Innovation and Technology Act) (FIT21 Act), which was passed in the House with an overwhelming majority of 279 to 136 votes on May 22, crucially delineates regulatory authority, clearly defining the two agencies responsible for regulating crypto assets: one is the Commodity Futures Trading Commission (CFTC), and the other is the SEC.
Teresa has publicly stated multiple times her desire to establish a new classification system for digital assets, allowing crypto assets not to be completely bound by the traditional Howey test, and believes that the Howey test should not determine the future of the industry or technology. If this idea comes to fruition, it will undoubtedly provide the industry with a set of executable and clear rules, significantly reducing uncertainty and attracting more institutional capital into the crypto field, driving the institutionalization wave of crypto assets.
Brendan Playford, co-founder of Masa, commented: 'Teresa is the change agent that the SEC urgently needs. She focuses on light-touch regulation, believes that the Howey test should not determine the future of the industry or technology, and will end the current situation of 'enforcement replacing regulation', working with all key stakeholders from Wall Street and the crypto industry to establish a clear market structure, allowing the crypto industry to thrive in the U.S. As a lawyer challenging the current SEC policies in Washington D.C. and defending the rights of crypto innovators, her qualifications far exceed what is needed—'Let the SEC be 'Goody' again!'
Summary
Once Teresa Goody Guillén is appointed, it will undoubtedly mark an unprecedented policy shift for the SEC, expected to help the SEC break free from the current predicament of law by enforcement, reshaping the competitiveness of the U.S. crypto industry through light-touch regulation and clear market rules.
Especially as a legal expert who deeply understands traditional financial rules and is proficient in blockchain technology, her good cooperation experience with blockchain projects like Masa also means that the crypto industry can establish more direct and pragmatic communication channels with the SEC through her in the future. As a 'bridge between technology and regulation', Teresa can more acutely capture industry needs and design a regulatory framework that balances innovation and norms for the crypto market.
However, with expectations come challenges—can Teresa balance the interests of traditional financial institutions and the emerging crypto industry? How to protect investor interests and maintain market stability amid transformations?
The answers to these questions may be revealed after her appointment.