- Donald Trump cannot “fire” Gary Gensler, only demote him from Chair to Commissioner.
- Gary Gensler will voluntarily resign on January 20, 2025, when Donald Trump will take office.
- With Gensler’s departure, the SEC could be in the hands of an acting chair, expected to be either Mark Uyeda or Hester Peirce.
- The top candidates are Hester Peirce, Mark Uyeda, Chris Giancarlo, Paul Atkins, Heath Tarbert, Robert Stebbins, Richard Farley, and Teresa Goody Guillén.
- Previously, Dan Gallagher was considered a top candidate, but he clarified that he wasn’t interested.
After much debate on how and if U.S. President-elect Donald Trump could actually fire SEC Chairman Gary Gensler “on day one,” the Chair himself announced he will be stepping down on January 20, 2025, when Trump is expected to take office.
Gensler’s announcement states he will be “stepping down” from the Commission, which could mean that, aside from giving up his Chairman seat, he will be leaving the SEC completely.
“Its 33rd Chair, Gary Gensler, will step down from the Commission effective at 12:00 pm on January 20, 2025.”
His departure could leave the SEC in the hands of an acting chair, expected to be either Mark Uyeda or Hester Peirce, per Bloomberg. Both are Republican and pro-crypto.
The five-person SEC Commission consists of the following:
- Anti-Crypto: Gary Gensler (Chairman)
- Pro-Crypto: Hester Peirce
- Anti-Crypto: Caroline Crenshaw
- Pro-Crypto: Mark Uyeda
- Anti-Crypto: Jaime Lizárraga
The law prevents the U.S. President from firing an SEC Commissioner. Previously, Trump’s only hope was to either demote Gary Gensler from Chairman to Commissioner and endorse a current or new Commissioner to take his place, which would have to be approved by the Senate per 15 U.S.C. § 78d, or hope that Gensler would resign, which the latter happened before his contract expires on June 5, 2026.
Initially, Donald Trump would have had to replace Caroline Crenshaw, whose term expired on June 5, 2024, but is permitted to serve up to 18 months until a successor has been appointed by the President and confirmed by the Senate.
Before Gensler’s resignation announcement, 18 Republican U.S. State Attorney Generals sued the U.S. SEC, accusing it of unconstitutional excessive intervention and unfair prosecution of the $3 trillion crypto industry, infringing states’ rights to regulate their economies, all under the leadership of Chair Gary Gensler.
Here are the considerations for the new SEC Chair.
Hester Peirce (SEC Commissioner)
Known by the industry as “Crypto Mom,” Peirce currently serves as SEC Commissioner and has long criticized Gensler’s aggressive approach toward the crypto industry.
Nominated by President Trump in his previous term, Peirce served as an adviser to the Senate Committee on Banking, Housing, and Urban Affairs. She was also a staff attorney at the SEC’s Division of Investment Management and worked with the WilmerHale law firm known for working with blockchain and crypto companies.
While already a Commissioner and an easy replacement for Gensler, Peirce indicated to Axios that she plans to leave the commission after her term ends in 2025, meaning she might not be interested in serving as Chair.
Mark Uyeda (SEC Commissioner)
Another Commissioner also being considered is Mark Uyeda, who has made his presence known in the crypto industry and partnered with Peirce on several opinions against the agency’s practices. Uyeda served as a securities counsel to former Pennsylvania Senator Pat Toomey.
Although considered an ally of the industry, crypto lawyer Jake Chervinsky Uyeda might be considered, but it’s more likely that Trump will bring in someone new.
Chris Giancarlo (Former CFTC Head and Now Paxos Board Member)
Also known as “Crypto Dad,” Chris Giancarlo was the former Chairman of the Commodity Futures Trading Commissioner from August 2017 to July 2019, nominated by Donald Trump. During his term, the agency adopted pro-crypto and pro-innovation stances, including allowing Bitcoin futures trading on regulated platforms.
Under Giancarlo, the CFTC officially recognized Bitcoin and other virtual currencies as commodities, giving the agency jurisdiction over crypto-related activities like derivatives and futures. By officially classifying crypto as commodities, the CFTC was able to establish a clearer regulatory framework, which could be something he would do if he became SEC Chair.
Giancarlo also launched the LabCFTC initiative, providing greater regulatory certainty to the market. It also served as a way to engage with innovators and gain insights into emerging financial technologies.
The former CFTC Chairman is co-chair of the digital works practice at Willkie Farr & Gallagher, joined the board of stablecoin issuer Paxos, and serves on the board of advisers at crypto lobbying firm The Digital Chamber.
He also authored a book titled “CryptoDad: The Fight for the Future of Money.”
Paul Atkins (Former SEC Commissioner)
Paul Atkins served as an SEC Commissioner from July 2002 to August 2008, before Bitcoin was created. After his time with the agency, Atkins later became involved with crypto by serving on the board of advisers for The Digital Chamber alongside Giancarlo.
According to CNBC, Atkins is a top pick for Trump’s new SEC Chair, supported by a 2016 report by The Wall Street Journal that called him “Trump’s point man on financial regulation.”
Atkins founded Patomak Global Patners LLC, which has advised crypto companies on complying with financial regulations, structuring their business, and engaging with regulators. He was also the co-chair of the Token Alliance and was an independent director of the Board of BATS Global Markets (which was acquired by CBOE).
The former SEC Commissioner has opposed the agency’s stance on crypto and, in 2016, played an influential role in Trump’s transition team, helping shape his approach to financial regulation.
Heath Tarbert (Former CFTC Chair)
Crypto investors have also floated the idea of Heath Tarbert being selected as Gary Gensler’s replacement, per DL News. The former CFTC Chairman also served as the chief legal officer at Citadel Securities and is now the chief legal officer at the USDC stablecoin issuer Circle.
Although not discussed by insiders, some crypto investors believe Tarbert’s balance with the CFTC and his role as the second-largest stablecoin issuer could result in a fair approach to crypto regulation.
During Tarbert’s tenure at the CFTC, the regulator took action against unregistered crypto derivatives platforms like BitMEX to ensure regulatory compliance.
Robert Stebbins (Former SEC General Counsel)
As the former SEC General Counsel, Robert Stebbins played a critical role in shaping the agency’s crypto regulation approach, leading to enforcement actions against unregistered initial coin offerings (ICOs) and fraudulent schemes.
According to Politico, many industry experts are considering him a potential candidate. Stebbins advised in the creation of over 85 rules, hundreds of staff orders, and overseeing over 2,750 enforcement actions, per Willkie Farr and Gallagher, where he currently leads.
Stebbins has also played a critical role at Morgan Stanley, advising Amgen on its $27.8 billion acquisition of Horizon Therapeutics and being involved in the proposed merger of Allergen and Pfizer.
Richard Farley (Wall Street Lawyer and SEC Historian)
Probably the most traditional finance pick on the list, Richard Farley is known for working on leveraged buyouts, being a partner at the Kramer Levin Naftalis & Frankel law firm, and chairman of its leveraged finance group.
Farley’s crypto experience is indirect, having worked with some of the world’s largest financing deals, including Goldman Sachs, Credit Suisse, UBS, and even Cantor Fitzgerald, per the NY Post. However, Farley worked on their financing and not specifically their crypto divisions.
He also married GOP’s NYC Finance Chairwoman Chivacci “Chele” Farley in 2016 and revealed his historian skills by writing a book in 2015 titled Wall Street Wars, detailing major Wall Street battles and the birth of the FDIC and SEC.
Teresa Goody Guillén (Blockchain Advocate and SEC Critic)
Currently, the co-leader of BakerHostetler’s Blockchain Team, Teresa Goody Guillén, is a strong blockchain advocate and critic of the SEC. Her firm even dubbed her an SEC “Enforcement Elite” lawyer, meaning the ideal lawyer to call should someone face an important SEC matter.
Guillén previously worked at the Office of the General Counsel at the SEC from 2009 to 2011, per her LinkedIn, during the infancy of Bitcoin. The candidate expressed her optimism in the crypto industry under Donald Trump, saying:
“The election shakes up the legal market… This industry is expected to thrive now. The election just changes as to what legal services are needed.”
What About Dan Gallagher?
Already playing a key role in Robinhood’s compliance, Dan Gallagher was considered a leading candidate, according to Politico, which cited a dozen regulators, lobbyists, and securities lawyers. However, Gallagher declined and said he was not interested in being considered for the role.
Previously, Robinhood received a Wells Notice from the SEC regarding its U.S. crypto operations. Gallagher, as its chief legal officer, responded that they believed the assets listed on its platform weren’t securities and that they looked forward to engaging with the SEC.
Another reason Gallagher made sense is that before joining Robinhood, he served four years as an SEC Commissioner and was also a partner at WilmerHale, where Peirce previously worked.
Kalshi, the crypto betting platform, estimated his odds of being SEC Chair at 61% before he announced he wasn’t interested in being considered.
