MetaLawMan predicted the SEC chair, whose term extends until 2026, may likely oppose the tradition if Trump eventually wins the election and becomes the new US President.
In a Twitter post on February 4, MetaLawMan, a popular crypto lawyer, said that Gary Gensler, the chairman of the United States Securities and Exchange Commission (SEC) may resign if former President Donald Trump wins the upcoming presidential elections in November.
The customary practice in the United States following a change in administration is for the SEC chairman to step down, paving the way for the appointment of someone aligned with the President’s political allegiance, in this case, a Republican.
SEC May Likely Leave Office This Year
This tradition was upheld by the former SEC chairman Jay Clayton, who resigned in 2020 after Trump’s defeat. Initially appointed by Trump to lead the agency, Clayton stepped down when Joe Biden assumed office, paving the way for Gensler to become his successor.
However, Gensler’s future hangs in the balance if a republican candidate wins the upcoming US Presidential elections.
MetaLawMan predicted the SEC chair, whose term extends until 2026, may likely oppose the tradition if Trump eventually wins the election and becomes the new US President. The crypto lawyer noted that if Gensler defies the norm, it would break with historical precedent, as no President has previously had to remove an SEC chairman “with cause” during a change in leadership.
If Trump wins, what happens to @GaryGensler?
SEC chairmen normally submit their resignations promptly after a Presidential election results in a change of party.
After the November 2020 election, Jay Clayton (a Trump appointee) promptly resigned both as SEC Chairman and as a…
— MetaLawMan (@MetaLawMan) February 4, 2024
A Different Era for Crypto
Gensler has, on many occasions, criticized the industry. Despite failing to provide an adequate regulatory framework, the SEC has chosen to regulate the emerging economy by enforcement. In 2023 alone, the agency brought approximately 46 enforcement actions against 124 individuals and companies in crypto.
However, MetaLawMan believes that a Republican-led SEC could usher in a different era of crypto regulation. With an anticipated surge in litigation against crypto firms, a Republican majority might lean towards a more industry-friendly resolution.
He believes the new era could involve dismissing cases conflicting with existing securities laws or settling on reasonable terms.
The crypto lawyer proposed that Hester Peirce, the current SEC commissioner, could wield substantial influence in guiding the agency’s crypto regulation if she were to take on the interim chairperson role if Gensler departs. With Peirce’s favorable stance on crypto, MetaLawMan suggests she is well-versed in the SEC’s crypto cases and could promptly implement corrective measures.