Following his many endorsements from prominent crypto figures, including the Winklevoss twins, Marc Andreessen, and Ryan Selkis, President-elect Trump is expected to deliver on his promise to support the growth and development of the digital asset industry in the United States. One of his key campaign promises was to remove Gary Gensler as SEC chair, stating, 'On day one, I will fire Gary Gensler.' Although Trump cannot directly force Gensler's resignation as a commissioner, he can appoint an interim SEC chair after his inauguration and nominate a new commissioner for Senate confirmation. Given the Republican majority in the Senate, Trump's nominee is likely to be confirmed, paving the way for a new SEC chair to take office within a few months.
Gensler has been at odds with the crypto sector due to his stance that existing regulations are sufficient, a view that crypto leaders disagree with. The SEC, under Gensler's leadership, has taken a strict approach to cryptocurrency transactions on centralized exchanges, arguing that most of them violate federal securities laws. Excluding the recent approval of spot bitcoin and ether exchange-traded funds, the SEC has not provided clear guidance on what is legal and illegal in the crypto space. Gensler has been openly skeptical of cryptocurrencies, and his views have not changed.
Speaking at NYU's School of Law, he stated, 'With all respect, the leading lights of this field in 2024 are either in jail or awaiting extradition right now.' In light of Trump's plans, Gensler may choose to resign before the new President takes office, allowing President Biden to appoint an interim chair from the remaining Democratic commissioners. Whoever Trump nominates would likely replace Commissioner Caroline Crenshaw, who is up for renomination. If Gensler resigns from the commission entirely, he would also need to be replaced through the nomination and confirmation process.
The prices of several cryptocurrencies, including Filecoin, Algorand, Polygon, and Near, have risen in anticipation of a more relaxed regulatory environment under the Trump administration.