The US Securities and Exchange Commission (SEC) will have a new chairman. Who will it be?

November 10, 2024 by cryptobreak

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Grigory Poperechny

10 November 2024.

Dan Gallagher, general counsel of trading plaftorm Robinhood Markets, is on the list of presumptive individuals who could take over as head of the US Securities and Exchange Commission (SEC). In general, the change of SEC leadership was one of the key promises of the election campaign of Donald Trump, who won the election on 5 November. The current chairman of the Commission Gary Gensler is remembered for his constant pressure on the crypto industry and unwillingness to develop regulations for it, so his dismissal will definitely benefit the coin niche.

Gary Gensler’s policy towards crypto is often referred to as regulation through coercion. In other words, the SEC does not provide companies with clear rules in order to normally conduct their own activities and develop.

However, the regulator is happy to sue industry representatives, which creates serious problems for them.

Consensys CEO and co-founder of Etherium Joe Lubin

For example, Consensys management, which is responsible for creating the MetaMask cryptocurrency wallet, announced earlier that 20 per cent of employees had been laid off. And as a reason for this was cited just the pressure of the SEC and the corresponding costs of the legal fight with the Securities Commission.

Who will be the new head of the SEC

Dan Gallagher is Robinhood’s general counsel, who served as SEC commissioner under the Obama administration from 2011 to 2015. As of today, he is considered the top contender to replace current SEC Chairman Gary Gensler.

This is reported by journalists of the publication Cointelegraph with reference to sources in Reuters.

The presumed candidate for the role of head of the SEC Dan Gallagher

In addition to Gallagher, the list of candidates also includes Paul Atkins, another former SEC commissioner who worked with the Trump team in 2016. Also included is Robert Stebbins, a partner at law firm Willkie Farr & Gallagher who served as the SEC’s general counsel during Trump’s first term as president.

Trump promised to fire Gensler “on the first day” of his presidency, which resonated with digital asset enthusiasts. As we’ve noted, the current Commission chairman has been accused of excessive and constant pressure on the market, leading to a slowdown in the industry and an exodus of blockchain industry representatives from the country.

Usually, SEC chairmen appointed by the president leave office with the arrival of a new administration. As a reminder, the incumbent President Joe Biden appointed Gensler in 2021, and he previously said that he would leave if Trump wins. In general, Gensler’s term officially expires in 2026, which means that he will definitely not be able to wait for it to end.

SEC head Gary Gensler

Gallagher has previously been named as a possible candidate to lead the SEC. A month ago, a former SEC official called him the “natural choice” for the position should Trump win.

However, the process of selecting a new chairman could take several weeks and it’s too early to confirm who will take the post. Recall, Trump will officially take office as president on Monday, 20 January 2025. On this day, the inauguration of the politician will take place – already the second in his life.

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Coinbase CEO Brian Armstrong has also spoken out about a possible nominee to head the SEC, CryptoSlate reports. He is backing Commissioner Hester Pearce, a well-known advocate for innovation and development of the crypto market, who has previously criticised Gary Gensler’s actions, among others.

Pearce was appointed SEC commissioner in 2018 and has since been a strong advocate for reforms that would allow companies in the crypto industry to operate in a clearer and fairer legal environment.

She proposed the Safe Harbour Rule, an idea of temporary protection for new crypto projects, giving them three years to develop before their tokens are recognised as securities and come under strict SEC oversight. This initiative has become an important topic in discussions of crypto market regulation, although it has not yet been adopted.

SEC Commissioner Hester Pearce

In September, Pearce directly stated that the SEC should recognise cryptocurrencies as assets that do not qualify as securities. Before that, she also did not appreciate the regulator's decision to ban the involvement of ethers in the basis of spot ETFs in staking. So some of the coins blocked there could boost the overall returns of those instruments - albeit only slightly.

Armstrong said he believes Pearce is “smart, fair and professional” and able to compromise between different political views. In his opinion, she is the best candidate for the position.