Next US SEC Chair... 3 'Pro-Cryptocurrency Advocates' Considered

'Virtual Currency Grim Reaper' Gensler Expected to Resign from SEC
Cryptocurrency Advisor Also Appointed to White House National Economic Council

Donald Trump, the president-elect who had predicted the ‘cryptocurrency capitalization’ of the United States, is reportedly planning to fill the leadership positions of major federal financial institutions with cryptocurrency-friendly figures, according to The Washington Post (WP) on the 11th (local time).

Among the major federal financial institutions, the Securities and Exchange Commission (SEC) is expected to see a leadership change, as it has exercised the most powerful authority over cryptocurrency regulation. According to sources, former SEC commissioner Daniel Gallagher, Robinhood CLO (Chief Legal Officer), along with Republican SEC commissioners Hester Peirce and Mark Uyeda, are being mentioned as candidates for the next SEC chairman.

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All three individuals mentioned have expressed dissatisfaction with the SEC’s approach to cryptocurrency regulation. CLO Gallagher has previously criticized the SEC’s regulations as an approach that "devastates" the U.S. cryptocurrency industry. Commissioner Uyeda, who has criticized the Biden administration’s cryptocurrency policies alongside Commissioner Peirce, recently stated in an interview with Fox News that "the SEC’s cryptocurrency war must end."

WP noted, "Commissioner Peirce is considered a likely candidate to become acting SEC chairperson with Trump’s entry into the White House," adding, "She may also lead the federal task force on future cryptocurrency policies." Additionally, sources said that former SEC commissioner Paul Atkins and former Commodity Futures Trading Commission (CFTC) commissioner Chris Giancarlo are also being considered.

Gary Gensler, SEC chairman known as the ‘cryptocurrency grim reaper’ for aggressively cracking down on major cryptocurrency exchanges such as FTX and Binance, is expected to step down. Earlier, President-elect Trump threatened, "I will fire Chairman Gensler on my first day in office." Brad Garlinghouse, CEO of Ripple, commented, "It seems clear that Trump is placing great emphasis on cryptocurrency," and added, "Gensler’s era is over." However, WP pointed out, "It is uncertain whether Trump can actually fire Gensler," noting that "if a regulatory head approved by the Senate is removed, a complex legal battle over presidential overreach could ensue."

A cryptocurrency advisor is also expected to be appointed to the National Economic Council (NEC), a key policy department of the White House. Sources explained that pro-cryptocurrency figures are likely to be appointed to agencies involved with cryptocurrency-related work, including the CFTC, Federal Deposit Insurance Corporation (FDIC), and Office of the Comptroller of the Currency (OCC). WP reported, "Some cryptocurrency industry executives have also discussed early executive orders or presidential directives that could benefit the cryptocurrency industry with Trump’s staff."

WP stated, "These signs suggest that there will be a dramatic change in the United States’ approach to cryptocurrency," and assessed, "The cryptocurrency industry, which poured huge amounts of money to help Trump enter the White House, has now rapidly emerged as one of the most influential groups in American politics."

Criticism of Trump’s pro-cryptocurrency moves is also mounting. Patrick Woodall, executive director of the nonprofit organization Americans for Financial Reform, which advocates for stronger cryptocurrency regulation, said, "The cryptocurrency industry is extremely unstable, causing people to suffer huge losses and rampant insider market manipulation," and criticized, "(Trump’s pro-cryptocurrency appointments) mean that people will become more vulnerable to fraud, abuse, market manipulation, and cyber intrusions."