Written by: Web3 Farmer Frank
On November 21, a piece of news was featured on the SEC's official website, and the crypto world cheered.
Gary Gensler perhaps did not expect that he would rise because of crypto and fall because of crypto. Even if his departure after 26 years would be considered normal, he still chose to leave on the day Biden resigned and Trump took office.
The merits and demerits of Gary Gensler's tenure will be evaluated by future generations. However, apart from the pressure from congressional members and institutions, it cannot be underestimated that the 'crypto president' Trump had threatened to dismiss Gensler upon taking office and appoint the crypto-friendly blockchain legal expert Teresa Goody Guillén as the SEC chairman.
So who is Teresa Goody Guillén? Why has she won Trump's favor? If she takes charge of the SEC, what different variables might she bring to the crypto industry?
Source: SEC Official Website
The major shift in crypto regulation at the SEC during the 'Trump era'
Since April 17, 2021, the SEC under Gary Gensler has become synonymous with 'the big stick' in the crypto industry, almost encompassing all major enforcement actions in recent years:
Whether it is the large-scale lawsuits filed against crypto exchanges Binance and Coinbase, or the tough stance of categorizing most crypto assets as securities, within just three and a half years, the SEC has completed over 2,700 enforcement actions and generated 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 one storm after another in the crypto market, causing the industry's high hopes for him at the beginning of his tenure to dissipate. Evaluations quickly polarized, making him the most controversial figure in the crypto industry.
In the 2024 U.S. presidential election, Trump has become the hope for the crypto industry. He has repeatedly criticized Gary Gensler's crypto regulatory policies and even stated in public speeches that if successfully elected as president, he would remove Gary Gensler from his position on the first day in office.
In Trump's reform plan, finding an SEC chair who understands both traditional finance and the crypto industry is a top priority. This is precisely why Teresa Goody Guillén, due to her unique cross-border background and industry support, has gradually become a potential favorite candidate for the new SEC chair: this senior securities law expert not only has extensive experience in traditional finance but also maintains close collaborative relationships with blockchain enterprises, providing her with an in-depth understanding of the operational logic of the crypto industry.
Who is Teresa, the 'potential successor to the SEC'?
According to public information, Teresa Goody Guillén is currently a partner at 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.
Source: BakerHostetler Official Website
Additionally, Teresa Goody Guillén has served as a litigation attorney in the SEC's Office of General Counsel and held senior positions at Kalorama Partners, which focuses on corporate compliance, risk management, and legal strategic consulting, as well as at The Goody Group LLC and Goody Counsel PLLC, which provide legal and consulting services.
From 2009 to 2011, served as a litigation attorney in the Office of General Counsel at the U.S. Securities and Exchange Commission (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, providing consulting services for SEC enforcement cases in collaboration with Harvey Pitt.
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-professional background: her experience at the SEC provides her with 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 academic teaching experience, it further enhances her authority in this intersection.
It is worth noting that BakerHostetler has taken on several important blockchain-related cases in recent years and provided legal consulting services to many Web3 projects. The team led by Teresa is particularly skilled in helping startups navigate complex regulatory challenges, such as developing compliance strategies, responding to regulatory investigations, and defending clients in litigation.
It is reported that the team led by Teresa has collaborated with well-known blockchain projects like the decentralized 'AI Data Chain' Masa to assist in promoting the application of Web3 innovative technologies within a legal framework.
Throughout, Teresa's open attitude towards the crypto industry has been regarded as synonymous with 'friendly'. She has pointed out on multiple occasions that the U.S. should adopt a more open approach in formulating crypto regulations and provide a supportive framework for technological innovation, rather than adopting a hardline 'litigation over regulation' strategy. This viewpoint has also earned her broad support from the Web3 community.
Will the SEC enter an 'all-out embrace of crypto' era?
From current indications, Teresa has become a strong candidate for the SEC chair, not only because her personal resume best meets the comprehensive needs of a SEC chair during the 'Trump era', but also due to the market's strong expectation of a 'policy turnaround' in crypto regulation.
In the eyes of the industry, she is an ideal candidate who can deeply understand traditional financial rules while providing support for Web3 innovation. If she ultimately takes over from Gary Gensler, it may lead the SEC down a completely different path and inject new vitality into the U.S. crypto industry.
It is important to note that one of the biggest obstacles facing the U.S. crypto industry is regulatory uncertainty. On May 22, the House passed the (21st Century Financial Innovation and Technology Act) (FIT21 Act) by an overwhelming majority of 279 votes to 136. A key point is the division of regulatory authority, clearly defining that there are two agencies responsible for regulating crypto assets: one is the U.S. Commodity Futures Trading Commission (CFTC) and the other is the SEC.
Teresa has repeatedly stated publicly that she hopes to establish a new classification system for digital assets, allowing crypto assets to no longer be completely constrained 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, greatly reduce uncertainty, attract more institutional capital into the crypto field, and promote the institutionalization of crypto assets.
Brendan Playford, co-founder of Masa, commented: 'Teresa is the change agent 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', uniting all key participants from Wall Street and the crypto industry to jointly formulate clear market structures, thereby 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 necessary—'Let the SEC be 'Goody' again!'
Summary
Once Teresa Goody Guillén is appointed, it will undoubtedly mark an unprecedented policy shift for the U.S. SEC, expected to free the SEC from its current predicament of litigation over regulation, and reshape the competitiveness of the U.S. crypto industry through light-touch regulation and clear market rules.
Especially as a legal expert well-versed in traditional financial rules and blockchain technology, her good collaborative experience with blockchain projects like Masa also suggests that the future crypto industry could establish a more direct and pragmatic communication channel with the SEC through her. 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, there are challenges under the expectations—Can Teresa balance the interests of traditional financial institutions and the emerging crypto industry? How to protect investor interests and maintain market stability amidst the transformation?
The answers to these questions may be revealed after her appointment.