According to Cointelegraph, United States President-Elect Donald Trump has indicated a willingness to bypass the Senate confirmation process for appointments within his administration, potentially including a successor for Securities and Exchange Commission (SEC) Chair Gary Gensler. In a post dated November 10, Trump asserted that he alone could decide which US Senator would serve as the majority leader when the new Congress convenes in January 2025. Trump expressed a desire for potential majority leaders to agree to recess appointments, allowing individuals to assume positions of authority without undergoing the traditional confirmation process involving questioning and scrutiny from lawmakers.
Under the US Constitution, the President has the power to fill vacancies during the Senate's recess by granting commissions that expire at the end of their next session. This authority enabled Trump during his first term to appoint individuals who might not have been approved by the Senate. Recess appointments are designed to be temporary and not a replacement for Senate approval. President Joe Biden nominated Gensler as an SEC commissioner in 2021, with the Senate confirming him in a 54 to 45 vote for a term ending in June 2026. During Trump's first term, he adhered to the constitutional process for appointing SEC commissioners but also attempted to bypass the Republican-controlled Senate for a US Attorney General recess appointment.
The question of who will succeed Gary Gensler remains uncertain. It is unclear whether any of Trump's potential candidates for SEC chair would secure enough votes for Senate confirmation or if Trump plans to rely entirely on recess appointments without official nominations. At the time of publication, Trump had not publicly named any potential replacements for Gensler. One of Trump's campaign promises to the crypto industry was to remove SEC Chair Gensler "on day one" if reelected, though experts suggest he cannot dismiss Gensler without cause. Historically, some regulators have chosen to resign when there is a change in political parties at the White House, but Gensler has not indicated any intention to step down.
Mary Jo White, who served as SEC chair during President Barack Obama's second term, concluded her tenure on January 20, 2017, coinciding with Trump's inauguration. Her successor, Jay Clayton, was confirmed by the Senate in a 61 to 37 vote, leaving the commission without a chair for approximately four months during the nomination and approval process.