Written by: DANIEL RAMIREZ-ESCUDERO
Translated by: Wenser, Odaily Planet Daily
Editor’s Note: The voting activities for the U.S. presidential election are currently underway (latest news: the vote counts for the seven swing states of the U.S. election will be announced around noon on November 6), and the key position of SEC Chair has once again become the focus of the cryptocurrency industry.
Taking into account the political situation in the U.S. and past popular candidates, Cointelegraph has identified 8 popular candidates who may succeed the current SEC Chair Gary Gensler. Odaily Planet Daily will summarize and compile this article, with some content edited for reader reference.
8 major candidates are competing for the next SEC Chair position.
Currently, the next SEC Chair candidate remains undecided, with a total of 8 people potentially taking on this key position. On April 17, 2021, current President Biden appointed Gary Gensler as Chair of the Securities and Exchange Commission (SEC), and according to the tenure norms, his term will last until January 5, 2026. However, due to Gensler's previous direct intervention in the U.S. cryptocurrency industry and the high-pressure measures lacking clear regulatory guidelines, he seems to be in a precarious position.
Former U.S. President and Republican presidential candidate Trump has previously stated at the 2024 Nashville Bitcoin Conference that if elected, he will fire Gary Gensler 'on day one' of his administration.
Of course, the President of the United States has the power to dismiss Gensler, but it is not an easy task. If Trump wishes to do so, he must provide justifiable reasons for dismissal, such as Gensler's dereliction of duty, inefficiency, or other forms of misconduct, and determining specific reasons, conducting legal reviews, and administrative transitions may 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 a while before the new SEC Chair takes office. Of course, if so, 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 stated her position on the SEC Chair role, but there are signs that the position may change to allow for a shift in regulatory direction. Billionaire Mark Cuban claims to have had close contact with Harris's team, telling the media that Harris tends to favor 'clear regulatory rules' and opposes 'regulation by litigation'. He believes that if Harris is elected, she might dismiss Gensler. He stated, 'I think the obvious question is, given his low public approval ratings, I suspect he will resign voluntarily.'
As of now, Gensler's potential successors remain uncertain, with Republicans generally leaning towards supporting innovation and less restrictive regulatory approaches, while Democrats tend to favor stricter regulations and investor protection. The appointment of the next SEC Chair may set the tone for future cryptocurrency regulation, and the industry is highly concerned about 'what the new SEC Chair's initial actions will be.'
So, the focus of the discussion has shifted to who will succeed Gensler and what stance they will take towards the cryptocurrency industry.
1. Hester Peirce - the 'Crypto Mom' that the industry is looking forward to; Probability: Low
SEC Commissioner Hester Peirce is considered one of the strong potential contenders to succeed Gensler. Given her likely implementation of comprehensive crypto-friendly regulatory policies if she were to become SEC Chair, combined 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 governmental 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, after being nominated by former President Obama, she officially joined the SEC.
She may be the most popular regulator among cryptocurrency supporters, with many referring to her as 'Crypto Mom'.
Previously, she had repeatedly criticized Gensler's aggressive stance towards the cryptocurrency industry: the most recent instance was on September 16 of this year, when she and Commissioner Mark Uyeda wrote in a dissenting opinion on a cryptocurrency case, 'It's a significant mistake to let cryptocurrency issues fall into endless cases of misguidance and overregulation, and this mistake continues.'
She publicly supports the crypto industry and criticizes the SEC's regulatory methods, leading many members of the cryptocurrency community to hope that she will be chosen to replace Gensler if Trump is elected.
However, she is unlikely to become SEC Chair, as she has previously indicated to industry media that she does not plan to stay at the SEC after her term ends in 2025.
2. Chris Giancarlo: 'Crypto Dad' of Bitcoin Futures; Probability: High
As a lawyer and former Chair of the U.S. Commodity Futures Trading Commission (CFTC), J. Christopher Giancarlo is often referred to as 'Crypto Dad' due to his popularity in the cryptocurrency industry. Later, he acknowledged this nickname in his book (Crypto Dad: The Battle for the Future of Money). According to previous reports by Politico, many in the U.S. industry lobbying firms consider Giancarlo a strong contender for SEC Chair.
During Trump's administration, while serving as CFTC Chair, he approved the trading of Bitcoin futures contracts, which was one of the necessary steps before the Bitcoin spot ETF was passed.
Currently, Giancarlo is a senior advisor and co-chair of digital work practice at Willkie Farr and Gallagher, while also holding other positions in several organizations. At the same time, 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 fields includes board and advisory roles at the U.S. Financial Exchange, the Digital Chamber, and Nomura Holdings.
3. Chris Brummer: The moderate choice for the Democrats; Probability: High
If Harris becomes the next President of the United States, Chris Brummer may become an important part of her administration.
Brummer has multiple connections to the Democratic Party—Obama nominated him to lead the CFTC in 2016, but Trump later withdrew this nomination; during the Biden administration, he became a popular candidate for CFTC Chair; Brummer is also one of the volunteers on Biden's financial regulatory transition team.
The law firm Anderson P.C. believes that if he is appointed as SEC Chair, it may signal that the U.S. government will adopt a more lenient regulatory approach towards cryptocurrencies, shifting the regulatory focus to establishing clear guidelines rather than stifling innovation.
Brummer has some experience in cryptocurrency regulation. On May 16 of this year, he founded a company focused on compliance for cryptocurrency companies (particularly aimed at ensuring that cryptocurrency project white papers comply with EU regulations), named Bluprynt.
An insider familiar with Brummer believes he is 'more qualified than Gary Gensler to be SEC Chair' and suggests this could be 'the maximum peaceful handling resolution that Harris's campaign team can propose for cryptocurrency'.
4. Paul Atkins: SEC Commissioner connected to Bush and Trump; Probability: Low
According to CNBC, former SEC Commissioner Paul Atkins from the George W. Bush administration has become a potential candidate for SEC Chair within 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 expressed opposition to the Dodd-Frank Act, which strengthened federal regulatory authority 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 at his consulting firm Patomak Global Partners, which he founded in 2009. At the same time, since 2017, he has also been co-chair of the Token Alliance, an industry association that advocates for digital assets and blockchain.
5. Erica Williams: A neutral candidate from the Harris faction; Probability: Medium
In terms of collaboration with the SEC, PCAOB Chair Erica Williams has extensive experience.
She has held several important positions in government, including Deputy Chief of Staff to three SEC Chairs, Special Assistant and Advisor for 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 his leadership of the PCAOB, the committee imposed a record fine of $25 million against 'KPMG Netherlands for cheating in internal training programs' and a $900,000 fine for 'violations of quality management at Deloitte's Colombia branch,' with the total fines for 2023 exceeding $20 million.
Although Erica has not made significant statements regarding the cryptocurrency industry, during her tenure, the PCAOB established a task force focused on emerging audit risks (including risks related to cryptocurrencies). Previously, Erica faced criticism for ignoring deficiencies before 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 oversight of publicly traded companies and broker-dealers.'
An insider revealed that Erica has a strong interest in advancing financial regulation, which may indicate that she could support cryptocurrency legislation while actively pursuing illegal activities in the cryptocurrency sector.
6. Heath Tarbert: Active CFTC Chair; Probability: Low
According to previous reports by CNBC, Heath Tarbert's experience as CFTC Chair from 2019 to January 2021 makes him a potential candidate for the next SEC Chair. Under his leadership, the CFTC set several industry records, including the highest number of cases handled 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 Treasury, with extensive political experience. However, he was once embroiled in significant controversy—because just 27 days after leaving the CFTC, he was hired by Citadel Securities as Chief Legal Officer, sparking criticism of the so-called 'revolving door phenomenon' from public service to private companies.
Currently, Tarbert is the Chief Legal Officer and Head of Corporate Affairs at Circle, the issuer of the stablecoin USDC.
7. Robert Stebbins: An advisor closely related to Trump's SEC Chair; Probability: Medium
According to Politico, several industry experts are considering Robert Stebbins as a potential candidate for the SEC Chair position.
Stebbins himself worked at Willkie Farr and Gallagher for 24 years, from 1993 to 2017, before joining the SEC as Chief Legal Officer.
According to information from the Willkie firm’s website, during his tenure as SEC General Counsel, Stebbins played a key role in up to 85 rulemaking initiatives, hundreds of staff appointments, the issuance of interpretive releases, and the oversight of more than 2,750 enforcement actions. When former SEC Chair Jay Clayton, a classmate of Trump from law school, took office in 2017, he assisted in forming his staff team. (Note from Odaily Planet Daily: For more about Clayton, see previous article (SEC 'revenue' of $4.7 billion in 2024, is the cryptocurrency industry a 'cash cow'?).)
Additionally, Stebbins has partnered with financial giant Morgan Stanley on several significant transactions, including the $27.8 billion 'Amgen acquisition of Horizon Therapeutics' and the proposed merger between Allergan and Pfizer. He also participated in the bidding for Fiat Chrysler's majority stake acquisition in the early 2010s.
8. Dan Gallagher: Critic of the Federal Reserve; Probability: Low
Robinhood's Chief Legal Officer Dan Gallagher is exceptionally familiar with the SEC—during the Obama administration, from 2011 to 2015, he served as a Republican committee member and held multiple positions at the agency.
In the late 2000s (around 2010), Gallagher played a significant role in the SEC’s Trading and Markets Division, served on the committee during the bankruptcy proceedings of banking giant Lehman Brothers, and engaged in addressing a series of challenges during the financial crisis.
He is known for his controversial dissenting opinions, criticizing 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 potential obstacles in becoming a candidate. Democrats typically take a cautious approach when appointing industry leaders to regulatory positions, and past controversies surrounding Robinhood—such as the decision to suspend GameStop stock trading during the 2021 'Meme Stock Frenzy'—may affect his candidacy.
It remains uncertain whether Gallagher is willing to leave Robinhood to take the 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 considered a potential candidate for the next SEC Chair.