Original source: Cointelegraph
Compiled by: Odaily Planet Daily (@OdailyChina)
Translated by: Wenser (@wenser2010)
8 top candidates are competing for the position of the next SEC chairman
Currently, the next SEC chairman candidate is still undecided, and a total of eight people may take this key position. On April 17, 2021, the current US President Biden appointed Gary Gensler as the chairman of the Securities and Exchange Commission (SEC). According to the practice of appointment, his term will last until January 5, 2026. However, due to Gensler's previous direct intervention in the US cryptocurrency industry and high-pressure measures without clear regulatory guidelines, he is likely to lose his job.
Former US President and Republican presidential candidate Trump had previously 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 US president has the power to fire Gensler, but this is not an easy task. If Trump wants to do this, he must provide legitimate reasons for the dismissal, such as Gensler's negligence, inefficiency or other forms of malfeasance. It may take more than a year to determine the specific reasons, conduct legal reviews and administrative transition.
If Trump is elected as the US president in 2024, he may have to work with Gensler for a period of time before the new SEC chairman takes office. Of course, if this happens, Gensler's resignation is not unexpected, but it depends entirely on Gensler himself.
On the Democratic side, Vice President and presidential candidate Kamala Harris has not yet officially stated her position on the position of SEC Chairman, but there are signs that the position may change in order to leave room for a shift in regulatory direction. Billionaire Mark Cuban claims to have had close contact with Harris' team. He told the media that Harris prefers "clear regulatory rules" and opposes "regulation through litigation." He believes that if Harris is elected, Gensler may be eliminated. He said bluntly: "I think the obvious problem is that, judging from the low public support rate, I guess he will resign on his own initiative."
As of now, Gensler's potential successor remains uncertain, with Republicans generally tending to support innovation and less restrictive regulation, while Democrats generally tend to favor stricter regulation and investor protection. The appointment of the SEC chairman may set the tone for future cryptocurrency regulation, and the industry is also paying close attention to the question of "what the next SEC chairman's first three priorities will be."
So, the topic becomes - who will take over Gensler's position and what attitude 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 potential contenders to replace Gensler. Considering that she may implement comprehensive crypto-friendly regulatory policies as SEC Chairman, coupled 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 government departments such as the Senate Banking, Housing and Urban Affairs Committee. She was also a lawyer in the SEC's investment management department and a partner at WilmerHale law firm. In 2018, she officially joined the SEC after former President Obama nominated her as a SEC commissioner.
She is perhaps the most popular regulator among cryptocurrency supporters, with many calling her “Crypto Mom.”
She has criticized Gensler’s aggressive stance toward the cryptocurrency industry several times before: most recently on September 16, she and Commissioner Mark Uyeda wrote in a dissenting opinion in a cryptocurrency case: “It was a grave mistake to allow the cryptocurrency issue to become a case of endless misdirection and overreach, and this mistake continues.”
Her public support for the crypto industry and criticism of the SEC's regulatory approach have led many members of the cryptocurrency community to hope that Trump would choose her to replace Gensler if he was elected.
However, she is unlikely to become SEC chair, as she has told industry media that she does not plan to stay at the SEC after her term ends in 2025.
“Crypto Mom”
2. Chris Giancarlo: The “Crypto Dad” of Bitcoin Futures; Likelihood: High
As a lawyer and former chairman of the U.S. Commodity Futures Trading Commission (CFTC), J. Christopher Giancarlo was nicknamed "Crypto Dad" because of his popularity in the cryptocurrency industry. He later accepted the nickname in his book (Crypto Dad: The Battle for the Future of Money). According to Politico, many people in U.S. industry lobbying firms believe that Giancarlo is a strong contender for the chairmanship of the SEC.
While serving as CFTC chairman during the Trump administration, he approved trading in bitcoin futures contracts, one of the necessary steps before a bitcoin spot ETF could be passed.
Currently, Giancarlo is a senior counsel and co-chair of the digital work practice at Willkie Farr and Gallagher, and holds other positions in multiple organizations. At the same time, he is also the founder and director of the "Digital Dollar Project", which aims to explore ways to "optionize the dollar."
Additionally, his resume in finance and digital assets includes roles as a board member and advisor at the American Financial Exchange, the Chamber of Digital Commerce, and Nomura Holdings.
“Crypto Dad”
3. Chris Brummer: A moderate Democratic pick; Likelihood: High
If Harris becomes the next US president, Chris Brummer may become an important part of her government.
Brummer has multiple ties to the Democratic Party - Obama nominated him to head the CFTC in 2016, but Trump later withdrew the nomination; during the Biden administration, he became a popular candidate for CFTC chairman; Brummer is 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 as SEC chairman, it may indicate that the U.S. government will take a more moderate regulatory approach to cryptocurrencies, and the regulatory focus will shift to formulating clear guidelines rather than stifling innovation factors.
Brummer has some experience in cryptocurrency regulation. On May 16 this year, he founded a company called Bluprynt, which focuses on regulatory compliance for cryptocurrency companies (especially ensuring that crypto project white papers comply with EU cryptocurrency regulations).
A source familiar with Brummer believes he is “more qualified to be SEC chairman than Gary Gensler,” and said this could be “the most peaceful resolution the Harris campaign could come up with on cryptocurrency.”
"There are more qualified people to be SEC Chairman than Gary"
4. Paul Atkins: SEC commissioner with ties to Bush and Trump; Likelihood: Low
According to CNBC, Paul Atkins, a former SEC commissioner during the George W. Bush administration, has emerged as one of the potential candidates for SEC chairman on the Trump team.
As an SEC commissioner during the Bush administration, he was known for opposing "heavy fines for companies that violate securities laws" and had previously opposed 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 his election in 2016 and was instrumental in influencing Trump to take a laissez-faire approach to financial regulation.
Atkins currently still works at Patomak Global Partners, the consulting firm he founded in 2009. At the same time, since 2017, he has also served as co-chairman of the Token Alliance, an industry association that advocates for the digital asset and blockchain industries.
'The man who could have an influence on Trump'
5. Erica Williams: A moderate candidate from the Harris faction; Likelihood: Medium
Erica Williams, chair of the Public Company Accounting Oversight Board (PCAOB), has extensive experience working with the SEC.
She has served in a number of senior government roles, including as deputy chief of staff to three SEC chairmen, special assistant and advisor on financial and economic policy in the Obama administration, and, before joining the PACOB Commission, as a litigation partner at Kirkland and Ellis.
During his tenure as PCAOB leader, the commission imposed a record $25 million fine on KPMG Netherlands for cheating in an internal training program and a $900,000 fine on Deloitte’s Colombia branch for quality management violations, bringing the department’s total fines for 2023 to more than $20 million.
Although Erica herself has not made an obvious statement on the cryptocurrency industry, during her tenure, the PCAOB established an investigation team focused on emerging audit risks, including those related to cryptocurrencies. Previously, Erica was criticized for ignoring the deficiencies of FTX before its 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 traded companies and broker-dealers."
An insider revealed that Erica has a strong interest in promoting progress in financial regulation, which may mean that she may support cryptocurrency legislation while actively pursuing illegal and criminal activities in the cryptocurrency field.
“Pro-Gary Gensler”
6. Heath Tarbert: Active CFTC Chairman; Likelihood: Low
As previously reported by CNBC, Heath Tarbert's experience as CFTC chairman from 2019 to January 2021 makes him one of the potential candidates for the next SEC chairman. Under his leadership, the CFTC set a number of industry records, including a record number of cases handled in a single fiscal year.
Tarbert has worked in the White House, the Justice Department, the Treasury Department and other federal government departments, and has extensive political experience. Of course, he was once embroiled in a huge controversy because he was hired as chief legal officer by Citadel Securities just 27 days after leaving the CFTC, sparking criticism of the so-called "revolving door phenomenon" of "working 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.
The "revolving door pusher" who takes over both government and business
7. Robert Stebbins: An advisor close to Trump's SEC chairman; Likelihood: Medium
According to Politico, several industry experts are considering Robert Stebbins as a potential candidate for the SEC chairmanship.
Stebbins himself worked at Willkie Farr and Gallagher from 1993 to 2017, when he joined the SEC as chief legal officer.
According to Willkie's company website, during his tenure as SEC general counsel, Stebbins played a key role in as many as 85 rulemakings, hundreds of staff appointments, the issuance of interpretive bills, and the supervision of more than 2,750 enforcement actions. When Trump's former law school classmate, Jay Clayton, the SEC chairman during his presidency, took office in 2017, he helped the latter build his team.
Stebbins also worked with financial giant Morgan Stanley on several major transactions, including Amgen's $27.8 billion acquisition of Horizon Therapeutics and the proposed merger of Allergan and Pfizer. He also worked on Fiat's bid for a majority stake in Chrysler in the early 2010s.
“One of the Trump faction figures”
8. Dan Gallagher: Federal Reserve critic; Likelihood: Low
Dan Gallagher, chief legal officer at financial trading company Robinhood, is unusually familiar with the SEC — he served as a Republican committee member during the pre-Obama administration, from 2011 to 2015, and held various positions at the agency.
In the late 2000s, Gallagher played a key role in the SEC’s Division of Trading and Markets, serving on the Commission during the liquidation of banking giant Lehman Brothers and working on a number of challenges during the financial crisis.
He is known for his controversial dissident views, critical of the Federal Reserve and the Dodd-Frank Act, and has advocated for a comprehensive review of U.S. stock market trading practices.
It’s worth noting that Gallagher faces some possible obstacles to his candidacy. Democrats are generally cautious about appointing industry leaders to regulatory positions, and Robinhood’s past controversies — such as its decision to suspend trading in GameStop shares during the 2021 “Meme stock frenzy” — could affect its candidacy.
It remains to be seen whether Gallagher will be willing to leave Robinhood for the SEC position. He joined the company's board of directors in October 2019 and became chief legal officer in May 2020; he has told the media that he likes his current position and is honored to be included as a potential candidate for the next SEC chairman.
“Crowd of spectators from the crypto industry”
