Trump Targets SEC Chair Gensler as Crypto’s Enemy

Former President Donald Trump positions himself as the pro-crypto candidate, vehemently criticizing U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler as the industry’s primary antagonist.

Potential for Gensler’s Continuation

According to U.S. investment bank TD Cowen, Gensler may remain a commissioner, possibly postponing anticipated regulatory relief for the crypto sector until late 2026.

Trump’s Promises

Trump pledged to dismiss what he calls the American blockchain industry’s No. 1 enemy during a highly attended Bitcoin conference. Nevertheless, there is no established precedent for a president directly removing the SEC chair.

Typically, SEC chairs resign during a transition of power at the White House, allowing for a new leader to be appointed.

“The Senate confirms SEC commissioners to five-year terms, staggered so that one term expires each June,” noted TD Cowen. “No more than three of the five commissioners may be from the same party as the President.”

Currently, Democrats have a 3-2 majority, with Gensler still chairing the commission. Notably, Commissioner Caroline Crenshaw’s term ended in June, but President Biden has put forth her nomination for a second term—expected to solidify the Democratic majority beyond 2024.

Implications of a Potential Trump Win

If Trump secures victory, he wouldn’t be able to nominate a new SEC commissioner until June 2025, when Republican Hester Peirce’s term expires. Even then, Peirce being a Republican means the GOP wouldn’t gain a majority.

“Trump could achieve that majority faster if Gensler resigns, but nothing mandates his departure,” stated TD Cowen.

The analysis implies that Gensler may remain to thwart GOP majority, with progressives likely pressuring him to safeguard Democratic policy victories over the next 18 to 24 months.

If Gensler stays, crypto regulatory progress could stagnate. While enforcement actions might soften, navigating regulatory changes or resolving current legal matters could become more complex under a continued Democratic majority. Furthermore, TD Cowen speculates that Trump might try to dismiss Gensler, yet “protections for commissioners are murky, and this could lead to litigation.”

In conclusion, TD Cowen observes, “It is hard to see the point of having bipartisan commissions if presidents can fire opposing party members for any reason.”