Donald Trump Set to Announce New SEC Chair Tomorrow
Donald Trump is set to announce his choice for the next chair of the US Securities and Exchange Commission (SEC). Sources indicate that the announcement may occur soon, as reported by FOX Business journalist Eleanor Terrett. Both Wall Street and the crypto sector are anticipating a potential shift in regulatory strategy from the SEC.
🚨NEW: @realDonaldTrump’s pick to replace @GaryGensler as @SECGov Chair could be announced as soon as tomorrow, sources tell @FoxBusiness. Stay tuned 📺.
— Eleanor Terrett (@EleanorTerrett) December 3, 2024
Current speculation points to Paul Atkins, a former SEC commissioner, as the frontrunner with a 70% probability of being appointed, according to the predictions market Kalshi. Brian Brooks follows with a 20% chance. If appointed, Atkins is likely to advocate for clearer crypto regulations, moving away from the enforcement-focused approach of outgoing Chair Gary Gensler.
Source: Kalshi
Other candidates under consideration include Mark Uyeda, Dan Gallagher from Robinhood, and former CFTC Chair Heath Tarbert. Atkins' previous discussions with Trump's team and strong support from the crypto community enhance his position as the leading candidate.
The Crypto Turnaround?
Gary Gensler's term as SEC Chair, ending on January 20, 2025, featured rigorous scrutiny of the cryptocurrency market, including numerous enforcement actions against crypto intermediaries for fraud and registration violations. His leadership included the approval of both spot and futures Bitcoin and Ethereum ETFs, which elicited mixed reactions within the industry.
In contrast, Atkins aims to provide regulatory clarity. At a recent Federalist Society event, he stated that unclear crypto regulations represent a "fundamental underlying issue." His focus on innovation and investor protection aligns with the needs of a technology-driven financial ecosystem seeking to resolve existing legal ambiguities.
Ripple’s Chief Legal Officer Stuart Alderoty proposed a roadmap for future crypto regulation, advocating for swift resolutions of non-fraud crypto cases, enhanced collaboration with Congress, and reforms for increased transparency. These proposals have gained traction among crypto stakeholders who hope for constructive changes under the next SEC chair.
A lot of unsolicited advice on here about who should (or shouldn’t) be the next SEC Chair. I trust the transition team to make the right call with these table stakes for crypto in mind:
1.End all non-fraud crypto litigation on Day 1.
2.Get commitments from Commissioners Uyeda and…— Stuart Alderoty (@s_alderoty) November 21, 2024
Wall Street and Crypto Brace for Trump's Decision
The financial sector closely monitors Trump's impending decision. The SEC is under pressure to regulate a $3 trillion cryptocurrency market, asserting its jurisdiction over much of the sector while industry leaders argue for congressional clarity in digital asset trading rules.
The SEC faces an unusual scenario as Trump assumes office on January 20, with only three commissioners remaining due to the resignations of Gensler and Commissioner Jaime Lizárraga, potentially hindering the agency's ability to implement controversial policies.
Wall Street anticipates a more lenient regulatory environment under Trump's administration, contrasting sharply with Gensler's extensive oversight. This scenario presents an opportunity for the crypto lobby and financial firms to influence a more innovative and growth-oriented SEC approach.