Gary Gensler is likely headed out, and possible replacements for the chairman of the Securities and Exchange Commission are being floated by the Trump transition team.
While Trump promised in July to fire Gensler on the first day of his second administration, he technically cannot remove Gensler (without cause) until his term ends in 2026. But the focus of the president-elect’s attention for hiring a new head of the SEC is the cryptocurrency issue.
Among the people some believe could take Gensler’s place are Dan Gallagher, Reuters reported. He previously worked as an SEC Commissioner and is currently responsible for legal, compliance and general affairs of Robinhood Markets. Gallagher criticized Gensler’s SEC and called for changes in how the agency approaches crypto regulation.
In September, Gallagher spoke before Congress in a hearing titled “Dazed and Confused: Breaking Down the SEC’s Politicized Approach to Digital Assets.” During his prepared remarks, Gallagher called out Gensler and said the SEC had fostered “federal regulatory uncertainty that kills innovation.”
“The SEC has engaged in regulation by enforcement, which is bad for American consumers who want greater access to digital assets. “It’s bad for innovation in the blockchain and digital asset sectors, and it’s bad for the U.S.’s already eroded competitive position when it comes to digital asset markets,” he said. declared during the hearing.
Robinhood did not immediately respond to Fortunerequest for comment.
According to Reuters, another possible candidate to take the reins of the SEC is Paul Atkins, who was part of Trump’s transition team in 2016 and who also served as SEC commissioner. He is currently CEO of consulting firm Patomak Global Partners.
Since 2017, Atkins has served as co-chair of the Token Alliance, an initiative of the Chamber of Digital Commerce. The chamber is dedicated to promoting “the acceptance and use of digital assets and blockchain-based technologies,” according to its website.
During an interview with crypto media outlet CoinDesk in 2022, Atkins said he agreed with the SEC and Gensler’s position that Bitcoin is not a security, but also criticized Gensler’s approach when it comes to crypto regulation.
“The way the SEC is doing it, as regulation through enforcement, or threatening to do so, is a real problem,” he said.
Patomak Global Partners did not immediately respond to Fortunerequest for comment.
Other reports pointed to names like Mark Uyeda, who began a second term as SEC commissioner in January. Uyeda has served as commissioner since 2022, when he was appointed by President Biden.
He also held several positions at the agency, including serving as senior advisor to former SEC Chairman Jay Clayton and legal advisor to Atkins when he was commissioner in the early 2000s.
Uyeda also criticized the SEC’s approach to crypto. In an interview with Fox Business in October, he called the agency’s crypto policies a “disaster,” adding that it had done nothing to clarify crypto rules.
He also advocated for a change at the top of the SEC to reform its crypto agenda. Fox Business interview this week.
“The Commission’s war on crypto must end, including crypto enforcement actions based solely on failure to register without allegations of fraud or harm,” he said in the interview . “President Trump and the American electorate have sent a clear message. Starting in 2025, the role of the SEC is to fulfill this mandate.
Trump-Vance transition spokesperson Karoline Leavitt said in a statement to Fortune that no decisions have been made on Trump appointees
Although during his first presidential term in 2019, Trump said he was “not a fan” of cryptocurrencies and that digital currencies are “not money,” he has since changed his position. ‘notice.
Trump actively embraced crypto during his 2024 presidential campaign and also got directly in on the action, launching his own NFT projects that reportedly earned him millions of dollars in cryptocurrencies and licensing fees.
Meanwhile, Gensler has managed to land some giant deals with some crypto companies, including the landmark $4.5 billion deal with Terraform Labs and its co-founder Do Kwon in June.
Still, many crypto industry leaders have criticized the SEC chairman’s approach, criticizing the agency for failing to provide clear guidance on crypto and filing lawsuits against companies that have made efforts to comply with SEC rules.
In October, Gensler suggested he might be willing to step down.
“Democracies have consequences, but we’re going to keep doing what we do well at the SEC until, like I said, the referee blows the whistle,” the SEC chairman said during a financial technology convention in Las Vegas. Reuters reported. “Traditionally, presidents decide who chairs the SEC. That’s a big part of democracy.
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