Original source: Cointelegraph
Translation: Odaily Planet Daily (@OdailyChina)
Translator: Wenser (@wenser2010)
Editor's note: The U.S. presidential election voting activities are in full swing (latest news: the voting statistics for the 7 swing states in the U.S. will be announced no later than around noon on November 6), and the key position of SEC chair has once again become the focus of attention in the cryptocurrency industry.
Considering the current political landscape and past popular candidates, Cointelegraph has selected 8 popular candidates who may succeed the current U.S. SEC chair Gary Gensler. Odaily Planet Daily will summarize this article, with some content edited for reader reference.
8 major candidates compete for the position of the next U.S. SEC chair.
Currently, the next SEC chair candidate remains undecided, with a total of 8 people potentially taking 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 appointment conventions, his term will last until January 5, 2026. However, due to Gensler's previous direct interventions in the U.S. cryptocurrency industry and high-pressure measures lacking clear regulatory guidelines, he is in a precarious position.
Former U.S. President and Republican presidential candidate Trump has made it clear at the 2024 Nashville Bitcoin conference that if elected, he would fire Gary Gensler on his 'first day in office.'
Of course, the President of the United States has the power to fire Gensler, but it is not an easy task. If Trump wants to do so, he must provide just cause for dismissal, such as Gensler's negligence, 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 U.S. president in 2024, he may have to work with Gensler for a while before a new SEC chair takes office. Of course, if so, Gensler's resignation wouldn't be surprising, but it entirely depends on Gensler himself.
From the Democratic Party's side, Vice President and presidential candidate Kamala Harris has not formally stated her position on the SEC chair role, but there are indications that the position may change to allow for a shift in regulatory direction. Billionaire Mark Cuban claimed to have had close ties with Harris's team and told the media that Harris leans towards 'clear regulatory rules' and opposes 'regulation by litigation.' He believes that if Harris is elected, Gensler could be removed. 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 successor remains uncertain, with Republicans generally inclined to support innovative, less restrictive regulatory approaches, while Democrats tend to favor stricter regulations and investor protections. The appointment of the SEC chair could set the tone for future cryptocurrency regulation, and the industry is highly concerned about what the 'new chair's first actions will be.'
So, the focus of the topic has shifted to—who will succeed Gensler, and what stance will they take towards the cryptocurrency industry?
1. Hester Peirce - The 'Crypto Mom' the industry is looking forward to; likelihood: low
SEC commissioner Hester Peirce is considered one of the strong contenders to replace Gensler. Given her potential to implement comprehensive crypto-friendly regulatory policies as SEC chair and 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 government departments such as the Senate Banking, Housing, and Urban Affairs Committee. She also worked as a lawyer in the SEC's investment management division and was a partner at WilmerHale law firm. In 2018, she was nominated by former President Obama to be an SEC commissioner and officially joined the SEC.
She may be the most popular regulator among cryptocurrency supporters, with many calling her the 'Crypto Mom.'
Previously, she has repeatedly criticized Gensler's aggressive stance towards the cryptocurrency industry: the most recent instance occurred on September 16 of this year when she and Commissioner Mark Uyeda wrote in a dissenting opinion on a cryptocurrency case, 'It is a significant mistake to let cryptocurrency issues fall into endless misguidance and excessive intervention, 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 Trump will choose her to succeed Gensler.
However, she is unlikely to become the 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: The 'Crypto Dad' of Bitcoin futures; likelihood: high
As a lawyer and former chair of the U.S. Commodity Futures Trading Commission (CFTC), J. Christopher Giancarlo has earned the nickname 'Crypto Dad' due to his popularity in the cryptocurrency industry. Later, he expressed acceptance of 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 presidency, while serving as CFTC chair, he approved the trading of Bitcoin futures contracts, which was one of the necessary steps prior to the approval of a Bitcoin spot ETF.
Currently, Giancarlo is a senior advisor and co-chair of the Digital Works 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.'
In addition, his resume in the financial and digital asset sectors includes serving as a board member and advisor at the U.S. Financial Exchange, the Digital Chamber of Commerce, and Nomura Holdings.
3. Chris Brummer: A moderate choice from the Democratic Party; likelihood: high
If Harris becomes the next U.S. president, Chris Brummer may become an important part of her administration.
Brummer has multiple connections with the Democratic Party—Obama nominated him to head the CFTC in 2016, but Trump later withdrew that nomination; during the Biden administration, he became a popular candidate for CFTC chair; Brummer was also one of the volunteers for the Biden administration's financial regulatory transition team.
Anderson P.C. law firm believes that if he is appointed SEC chair, it may indicate that the U.S. government will adopt a more peaceful regulatory approach towards cryptocurrencies, focusing on developing 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 cryptocurrency company regulatory compliance, particularly ensuring that crypto project white papers comply with EU cryptocurrency regulations, called Bluprynt.
A source familiar with Brummer believes he is 'more qualified than Gary Gensler to be SEC chair' and suggests this could be the 'maximum peaceful resolution' the Harris campaign can propose regarding cryptocurrency.
4. Paul Atkins: SEC Commissioner connected to Bush and Trump; likelihood: low
According to CNBC reports, 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 violating securities laws'; previously, he had expressed opposition to the Dodd-Frank Act, which strengthened federal regulatory power after the 2008 financial crisis.
Atkins played a key role in Trump's political transition team after he was elected president in 2016, significantly influencing Trump's laissez-faire attitude towards financial regulation.
Currently, Atkins still serves in the consulting firm Patomak Global Partners, which he founded in 2009. At the same time, he has also served as co-chair of the industry association Token Alliance, which advocates for the digital asset and blockchain industry, since 2017.
5. Erica Williams: A neutral candidate from the Harris faction; likelihood: 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 for three SEC chairs, special assistant and advisor for financial and economic policy during the Obama administration, and served as a litigation partner at Kirkland and Ellis before joining the PCAOB.
During his leadership of the PCAOB, the committee imposed a record $25 million fine for 'cheating in internal training programs at KPMG Netherlands' and a $900,000 fine for 'quality management violations at Deloitte's Colombia branch,' with the department's total fines exceeding $20 million in 2023.
Although Erica has not made any obvious statements regarding the cryptocurrency industry, during her tenure, the PCAOB established a task force focusing on emerging audit risks, including cryptocurrency-related risks. Previously, Erica faced criticism for overlooking its flaws prior to the FTX collapse at the end of 2022. Regarding this matter, she clarified at a meeting in November 2022, 'The PCAOB's jurisdiction is limited to the audit management of publicly listed companies and broker-dealers.'
An insider revealed that Erica has a strong interest in advancing financial regulation, which may mean she will support cryptocurrency legislation while actively pursuing illegal activities in the cryptocurrency space.
6. Heath Tarbert: Active CFTC chair; likelihood: low
According to previous reports by CNBC, Heath Tarbert's experience as CFTC chair from January 2019 to January 2021 makes him a potential candidate for the next SEC chair. Under his leadership, the CFTC set multiple industry records, including processing the highest number of cases in a single fiscal year.
Tarbert has worked in several federal government departments, including the White House, Department of Justice, and Department of Treasury, and has extensive political experience. Of course, he was once embroiled in controversy—because just 27 days after leaving the CFTC, he was hired by Citadel Securities as chief legal officer, raising criticisms of the so-called 'revolving door phenomenon' between public service and private sector jobs.
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; likelihood: medium
According to Politico, several industry experts are considering Robert Stebbins as a potential candidate for the SEC chair position.
Stebbins worked at Willkie Farr and Gallagher from 1993 to 2017 before joining the SEC as chief legal officer.
According to information from the Willkie company website, during his tenure as SEC general counsel, Stebbins played a key role in up to 85 rule-making processes, hundreds of staff appointments, the issuance of interpretive rules, and the oversight of more than 2,750 enforcement actions. When Trump's former law school classmate and SEC chair during his presidency, Jay Clayton, took office in 2017, he assisted him in forming a subordinate team. (Odaily Planet Daily note: For more information on Clayton, see previous articles on the $4.7 billion 'revenue' of the U.S. SEC in 2024, with the cryptocurrency industry becoming a 'cash cow'?)
Additionally, Stebbins has collaborated with financial giant Morgan Stanley on several significant deals, including the $27.8 billion 'Amgen Acquisition of Horizon Therapeutics' and the proposed merger of 'Allergan and Pfizer.' He also participated in the bid for Fiat Chrysler Group's majority stake acquisition in the early 2010s.
8. Dan Gallagher: A critic of the Federal Reserve; likelihood: low
Dan Gallagher, the chief legal officer of financial trading company Robinhood, 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 within the agency.
In the late 2000s (around 2010), Gallagher played a significant role in the SEC's trading and markets department, served on the committee during the bankruptcy of banking giant Lehman Brothers, and was involved 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 behaviors in the U.S. stock market.
It is worth mentioning that Gallagher's candidacy faces potential obstacles. Democrats typically take a cautious approach when appointing industry leaders to regulatory positions, and past controversies surrounding Robinhood—such as the decision to halt trading of GameStop shares during the 2021 'Meme stock frenzy'—may impact his candidacy.
It remains uncertain whether Gallagher is willing to leave Robinhood to take an 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.
