As the US election 2024 results approach, both Republican and Democratic candidates signal plans to replace SEC Chair Gary Gensler, potentially reshaping crypto regulations.
For the past three years, SEC Chair Gary Gensler has been seen as a significant opponent of the crypto industry, and many feel his SEC stand has imposed an unfair crackdown.
His strong regulatory approach focuses on enforcement rather than creating clear policy changes, a stance that has led to frustration across the crypto community.
Now, the US election 2024 could signal a shift, with both leading candidates—Republican and Democratic—likely to favor his replacement, regardless of their other positions on crypto.
The crypto sector’s dissatisfaction with SEC Chair Gary Gensler stems from his emphasis on enforcement rather than on establishing a transparent regulatory framework. Instead of issuing rules to guide the industry, the SEC under Gensler’s leadership has targeted individual firms.
Dan Gallagher, a potential SEC chair under Trump, has criticized this “regulation by enforcement” approach, noting it’s not how the American public expects government oversight.
Hester Peirce, another potential SEC appointee under Trump, finds Gensler’s approach both ineffective for the industry and a strain on the SEC’s limited resources. Both are popular among the crypto community for advocating a clear, fair set of policy changes.
Meanwhile, if Harris wins, she may also look for a new SEC chair. Though she remains cautious about crypto, she has acknowledged the importance of pro-crypto voters this election.
Harris’s potential picks for SEC chair, like Chris Brummer and Erica Williams, are regulatory veterans who focus on fair compliance and market stability. They represent a balanced approach and may introduce a regulatory framework favorable to crypto investors without alienating voters wary of the industry.
The odds of Gary Gensler resigning or being replaced after the election are high. Trump has openly committed to replacing him if he wins, even promising to make the U.S. the “crypto capital.”
Trump’s crypto policies resonate with the industry, and he’s been vocal about his pro-crypto stance. Meanwhile, Harris has shown a willingness to depart from Biden’s anti-crypto approach. With bipartisan support for a new SEC chair, Gensler’s replacement seems likely, though the new SEC chair’s approach could vary widely depending on who wins.
US election results may start a new chapter for cryptocurrency and related policy changes. The future of SEC leadership and crypto regulation could shift significantly. A new chair may introduce a structured, transparent framework that addresses industry concerns without stifling innovation.
Also read: Why is Crypto Going Up Today: Here’s What You Need to Know