Original source: Cointelegraph
Translation: Odaily Planet Daily (@OdailyChina)
Translator: Wenser (@wenser2010)
8 Major Candidates Compete for the Next Chair of the U.S. SEC
Currently, the next candidate for SEC chair remains undecided, with 8 individuals potentially taking on this key position. On April 17, 2021, U.S. President Joe Biden appointed Gary Gensler as the chair of the Securities and Exchange Commission (SEC), and according to customary practice, his term is set to last until January 5, 2026. However, due to Gensler's previous direct interventions in the U.S. cryptocurrency industry and his high-pressure measures lacking clear regulatory guidelines, he is at risk of losing his position.
Former U.S. President and Republican presidential candidate Donald Trump has previously stated at the 2024 Nashville Bitcoin Conference that if elected, he would fire Gary Gensler on "his first day in office."
Of course, the U.S. president has the authority to dismiss Gensler, but it is not an easy task. If Trump wants to do this, he must provide justifiable reasons for the 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 alongside Gensler for a period before the new SEC chair takes office. Naturally, if that happens, Gensler's resignation would not be surprising, but that entirely depends on Gensler himself.
On the Democratic 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 claims to have had close contact with Harris's team, telling the media that Harris leans towards "clear regulatory rules" and opposes "regulation through litigation." He believes that if Harris is elected, she may remove Gensler. He stated, "I think the obvious question is, given his low public support, I suspect he will resign voluntarily."
As of now, Gensler's potential successors remain uncertain, with Republicans generally favoring innovation and less restrictive regulatory approaches, while Democrats tend to favor stricter regulations and investor protection. The appointment of the next SEC chair may set the tone for future cryptocurrency regulation, and the industry is highly concerned about "what the new SEC chair's 'first three fires' will be."
Thus, the focus shifts to—who will succeed Gensler, and what stance will they take towards the cryptocurrency industry?
1. Hester Peirce—The "Crypto Mom" Expected by the Industry; Probability: 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, combined 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 Division and a partner at WilmerHale law firm. After being nominated by former President Obama as an SEC commissioner in 2018, she officially joined the SEC.
She may be the most welcomed regulator among cryptocurrency supporters, with many referring to her as the "Crypto Mom."
Previously, she has criticized Gensler's aggressive stance towards the cryptocurrency industry multiple times: the most recent instance was on September 16 of this year, where 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 overreach, and this mistake continues."
Her public support for the crypto industry and criticism of the SEC's regulatory methods have led many members of the cryptocurrency community to hope that Trump will choose her to replace Gensler.
However, she is unlikely to become 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.
“Crypto Mom”
2. Chris Giancarlo: The "Crypto Dad" of Bitcoin Futures; Probability: High
As a lawyer and former chair of the U.S. Commodity Futures Trading Commission (CFTC), J. Christopher Giancarlo is popularly referred to as the "Crypto Dad" due to his popularity in the cryptocurrency industry. Later, he accepted this nickname in his book "Crypto Dad: The Fight for the Future of Money." According to previous reports from Politico, many in the U.S. industry lobbying firms consider Giancarlo a strong contender for SEC chair.
During his tenure as CFTC chair under Trump, he approved the trading of Bitcoin futures contracts, which was one of the necessary steps for the approval of a Bitcoin spot ETF.
Currently, Giancarlo is a senior advisor and co-chair of the digital practice at Willkie Farr and Gallagher law firm, while also holding other positions in various organizations. Additionally, he is the founder and director of the "Digital Dollar Project," which aims to explore methods for "dollarization."
Moreover, his resume in the financial and digital asset fields includes serving as a board member and advisor at the U.S. Financial Exchange, the Digital Chamber of Commerce, and Nomura Holdings.
“Crypto Dad”
3. Chris Brummer: The Moderate Choice for Democrats; Probability: High
If Harris becomes the next U.S. president, Chris Brummer may play an important role in her administration.
Brummer has multiple connections to 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 is also one of the volunteers on Biden's financial regulatory transition team.
Anderson P.C. law firm believes that if he is appointed as SEC chair, it may signal a more peaceful regulatory approach towards cryptocurrencies from the U.S. government, with a focus on establishing 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 regulatory compliance for cryptocurrency companies (especially 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 stated that this could be "the maximum peaceful resolution towards cryptocurrencies that Harris's campaign team can propose."
“The Man More Qualified than Gary to be SEC Chair”
4. Paul Atkins: SEC Commissioner Linked to Bush and Trump; Probability: Low
According to CNBC, 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"; he previously expressed opposition to the Dodd-Frank Act, which strengthened federal regulatory powers after the 2008 financial crisis.
Atkins played a key role in Trump's political transition team after his election in 2016, significantly influencing Trump's laissez-faire attitude towards financial regulation.
Currently, Atkins still serves at his consulting firm, Patomak Global Partners, which he founded in 2009. Additionally, since 2017, he has also served as co-chair of the Token Alliance, an industry association advocating for digital assets and blockchain.
“The Man Who Can Influence Trump”
5. Erica Williams: A Neutral Candidate from the Harris Faction; Probability: Medium
In terms of collaboration with the SEC, Erica Williams, chair of the Public Company Accounting Oversight Board (PCAOB), has extensive experience.
She has held several important positions in government, including serving as deputy chief of staff to three SEC chairs, special assistant and advisor on financial and economic policy during the Obama administration, and a litigation partner at Kirkland and Ellis law firm before joining the PCAOB.
During her leadership of the PCAOB, the board imposed a record $25 million fine on "KPMG Netherlands for cheating in internal training programs" and a $900,000 fine on "Deloitte's Columbia branch for quality management violations," with the total fines exceeding $20 million in 2023.
Although Erica herself has not made any significant statements regarding the cryptocurrency industry, during her tenure, the PCAOB established an investigative team focused on emerging audit risks (including cryptocurrency-related risks). Previously, Erica faced criticism for overlooking deficiencies before the collapse of FTX at the end of 2022. Regarding this matter, she clarified in 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 advancing financial regulatory progress, which may indicate that she could support cryptocurrency legislation while actively pursuing illegal activities in the cryptocurrency sector.
“Dear Gary Gensler Faction”
6. Heath Tarbert: Active CFTC Chair; Probability: Low
According to previous reports from CNBC, Heath Tarbert's experience as CFTC chair from 2019 to January 2021 makes him a potential candidate for the next SEC chair. Under his leadership, the CFTC set multiple industry records, including a historic number of cases processed in a single fiscal year.
Tarbert has worked in several federal government departments, including the White House, the Department of Justice, and the Department of the Treasury, giving him extensive political experience. However, he became embroiled in significant controversy—just 27 days after leaving the CFTC, he was hired by Citadel Securities as Chief Legal Officer, sparking criticism of the so-called "revolving door phenomenon" of moving 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 Gatekeeper" with Connections in Politics and Business
7. Robert Stebbins: Advisor Closely Linked to Trump's SEC Chair; Probability: 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 firm’s website, during his tenure as SEC General Counsel, Stebbins played a key role in up to 85 rulemakings, hundreds of staff appointments, the issuance of interpretive releases, and 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, Stebbins assisted him in forming his subordinate team.
Additionally, Stebbins has collaborated with financial giant Morgan Stanley on several significant transactions, including the $27.8 billion "Amgen Acquisition of Horizon Therapeutics" and the proposed merger between "Allergan and Pfizer." He was also involved in the bidding for Fiat Chrysler's acquisition of a majority stake in Chrysler in the early 2010s.
“One of Trump's Faction Figures”
8. Dan Gallagher: Critic of the Federal Reserve; Probability: Low
Dan Gallagher, Chief Legal Officer of the 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 several positions within the agency.
In the late 2000s (around 2010), Gallagher played a significant role in the SEC's Trading and Markets Division, serving on the commission during the liquidation process of banking giant Lehman Brothers and addressing a series of challenges during the financial crisis.
He is known for his highly controversial dissenting opinions and has been critical of the Federal Reserve and the "Dodd-Frank Act." He has also advocated for a comprehensive review of trading practices in the U.S. stock market.
It is worth noting that Gallagher may face some potential obstacles to becoming a candidate. The Democratic Party typically takes a cautious approach when appointing industry leaders to regulatory positions, and Robinhood's past controversies—such as the decision to suspend trading of GameStop stock during the "Meme Stock Frenzy" in 2021—could affect his candidacy.
Whether Gallagher is willing to leave Robinhood to take on an SEC position remains uncertain. 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.
“Onlookers from the Crypto Industry”
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