On November 21, a piece of news captured attention on the SEC's official website, causing the crypto world to cheer.
Gary Gensler may not have anticipated that he would rise and fall with crypto. Even if his departure after 26 years would be considered normal, he still chose to leave on the day Biden resigned and Trump was inaugurated.
Gary Gensler's merits and demerits during his tenure will be evaluated by future generations. However, the reasons for his early departure, besides pressure from Congress and institutions, include the fact that 'crypto president' Trump had threatened to dismiss Gensler upon taking office and appoint crypto-friendly blockchain legal expert Teresa Goody Guillén as the SEC chair.
So who is this Teresa Goody Guillén? Why does she have Trump's favor? If she takes charge of the SEC, what different variables could she bring to the crypto industry?
Source of the image: SEC official website
'Trump Era' SEC's Major Shift in Crypto Regulation
Since April 17, 2021, under Gary Gensler's leadership, the SEC has become synonymous with a 'big stick' in the crypto industry, almost throughout all major crypto enforcement actions in recent years:
Whether it's the large-scale lawsuits against crypto exchanges Binance and Coinbase or the hardline stance that classifies most crypto assets as securities, in just three and a half years, the SEC has completed over 2,700 enforcement actions and generated more than $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 sparked numerous storms in the crypto market, causing the crypto industry to lose the hopes it had at the beginning of his tenure. Evaluations have quickly polarized, making him one of the most controversial figures in the crypto industry.
In the 2024 U.S. presidential campaign, Trump has become a hope for the crypto industry. Trump has repeatedly criticized Gary Gensler's crypto regulatory policies and even stated in public speeches that if elected president, he would remove Gary Gensler from office on his first day.
In the vision of Trump's reform plan, finding an SEC chair who understands both traditional finance and the crypto industry is critical. This is precisely why Teresa Goody Guillén, with her unique cross-industry experience 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 cooperation with blockchain companies, deeply understanding the operational logic of the crypto industry.
'Potential Successor to the SEC,' who is Teresa?
According to public information, Teresa Goody Guillén is currently a partner and co-head of the blockchain team at BakerHostetler law firm. She joined in January 2019 and leads a team handling legal matters involving blockchain technology and digital assets, accumulating rich practical experience in areas such as blockchain technology, digital assets (including NFTs), DAOs, and DeFi.
Source of the image: BakerHostetler official website
Additionally, Teresa Goody Guillén also served as a litigation attorney in the Office of the General Counsel of the SEC and held senior positions at Kalorama Partners, focusing on corporate compliance, risk management, and legal strategic 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 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, as Chief Operating Officer and Managing Director, collaborating with Harvey Pitt to provide consulting services on SEC enforcement cases for clients;
From 2015 to 2019, involved in the establishment of The Goody Group LLC and Goody Counsel PLLC, serving as CEO;
This also showcases Teresa's unique cross-career background: her experience at the SEC provided 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. Additionally, her academic teaching experience further enhances her authority in this intersection.
It is noteworthy that BakerHostetler has recently taken on several important cases related to blockchain and provided legal consulting services for multiple Web3 projects. Teresa's team is particularly adept at helping startups navigate complex regulatory challenges, such as developing compliance strategies, responding to regulatory investigations, 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, assisting in promoting the application of Web3 innovative technologies within a legal framework.
All along, Teresa's public attitude towards the crypto industry has been seen as synonymous with 'friendliness.' 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, rather than adopting a hardline strategy of 'enforcement replacing regulation,' a viewpoint that has earned her widespread support from the Web3 community.
Will the SEC enter an 'all-out embrace of crypto' era?
From the current signs, Teresa becoming a popular candidate for SEC chair is not only due to her personal resume matching the comprehensive needs of the SEC chair in the 'Trump era' but also reflects the market's strong expectation for a 'policy shift' in crypto regulation.
In the industry’s view, she is an ideal candidate who can deeply understand traditional financial regulations while supporting Web3 innovation. If she ultimately succeeds Gary Gensler, it could lead the SEC down a completely different path, injecting new vitality into the U.S. crypto industry.
It is important to note 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 passed in the House with an overwhelming majority of 279 to 136 votes on May 22, is crucial in delineating regulatory authority, clearly defining two agencies responsible for regulating crypto assets: the U.S. Commodity Futures Trading Commission (CFTC) and the SEC.
Teresa has publicly stated multiple times that she hopes to establish a new classification system for digital assets, allowing crypto assets to no longer be entirely constrained by the traditional Howey test, and believes that the Howey test should not determine the future of the industry or technology. Once this idea is realized, it will undoubtedly provide the industry with a set of executable and clear rules, greatly reducing uncertainty and attracting more institutional capital into the crypto sector, driving the institutional wave of crypto assets.
Brendan Playford, co-founder of Masa, commented: 'Teresa is the change agent that the SEC desperately 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 state of 'enforcement replacing regulation,' working with all key stakeholders from Wall Street and the crypto industry to jointly establish a clear market structure that allows the crypto industry to thrive in the U.S. As a lawyer challenging current SEC policies in Washington, D.C., and defending the rights of crypto innovators, her qualifications far exceed what is required — 'let the SEC be 'Goody' again!'
Summary
If Teresa Goody Guillén is appointed, it will undoubtedly mark an unprecedented policy shift for the SEC, with the potential to help the SEC escape the current predicament of relying on enforcement instead of law, reshaping the competitiveness of the U.S. crypto industry through light-touch regulation and clear market rules.
Especially as a legal expert who thoroughly understands traditional financial rules and is proficient in blockchain technology, her good cooperation experience with blockchain projects like Masa also means that the future crypto industry can 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 regulation for the crypto market.
However, alongside expectations come challenges — can Teresa balance the interests of traditional financial institutions with those of the emerging crypto industry? How will she protect investor interests and maintain market stability during this transformation?
The answers to these questions may be revealed after her appointment.