Cryptocurrency community expects SEC policy changes in Gensler's final months as Chair
Crypto community speculates on SEC's future under Trump's pro-crypto stance
With Donald Trump’s presidential victory, Gary Gensler, current SEC Chair, is expected to face increased scrutiny, particularly around his aggressive approach toward crypto regulation.
Trump, who has expressed pro-crypto views, is likely to appoint a more crypto-friendly SEC Chair after his inauguration on January 20, 2025. Mark Uyeda and Hester Peirce are reportedly top candidates for the role, with Uyeda leading the list. However, Trump cannot directly remove Gensler but could demote him to a commissioner role, as most SEC chairs step down following an administration change, reports Cryptopolinat.
Will Gensler Continue His Crypto Crackdown?
Gensler’s remaining 75 days in office could go in one of two directions: a continued crackdown on crypto or a more cautious approach to ease into the transition. Crypto lawyer Jake Chervinsky suggests that Trump’s incoming administration may prioritize halting aggressive SEC actions, and new leadership might re-evaluate ongoing enforcement and Department of Justice cases, such as those against Tornado Cash. However, the crypto community remains on edge, with some speculating that Gensler could expedite enforcement actions, issuing additional lawsuits, Wells Notices, or subpoenas.
SEC Transition: Final Push or Strategic Pause?
Some believe that Gensler and his team might take a more measured approach to avoid stirring controversy during the transition. Any last-minute cases initiated under his leadership would face delays, as the new administration may prioritize changing course. There’s historical precedent for late-term actions: for instance, the SEC’s lawsuit against Ripple was filed in the final days of the Trump administration. If Gensler chooses to push forward, he could finalize rule changes, like updating the SEC’s “exchange” definition, which could mandate additional registrations. However, Congress and the new SEC Chair could later challenge these rules, potentially overturning them.
For now, the crypto industry watches closely, uncertain whether Gensler’s last days will bring an intensification of enforcement or a temporary pause until Trump’s administration takes over.
Recently we wrote, that Paul Grewal, Chief Legal Officer of Coinbase, recently expressed optimism regarding significant shifts in U.S. cryptocurrency regulations.
