Gary Gensler’s departure from SEC means scrutiny for successor

On November 22, Gary Gensler, the United States Securities and Exchange Commission (SEC) Chair announced that he will be stepping down from his position on January 20. Known for being one of the most “anti-crypto” SEC chairs in history, Gensler’s departure has been met with celebrations from crypto users. However, the incoming pick for SEC Chair will have to go through confirmation hearings in the US Senate.

During his time in office, the SEC under Gensler’s leadership filed lawsuits against various Web3 protocols and exchanges, including Coinbase, Uniswap, Consensys, LBRY, and others. These lawsuits have garnered criticism from the crypto community. President Elect Donald Trump had promised to fire Gensler on his first day in office, but due to regulations, that battle did not take place as Gensler decided to resign.

Crypto users took to social media to express their joy at Gensler’s resignation. Attorney and content creator Jeremy Hogan even created a post urging readers to “Sing it with me” to celebrate Gensler’s departure. Additionally, DeFi enthusiast KatieePCrypto shared an AI-generated video of Donald Trump firing Gensler, which went viral within the pro-crypto circles.

As for the nominee to replace Gensler, Trump has not yet announced a name. Speculation is circulating around a few possible picks, including Commodities and Futures Exchange Commission Chair Summer Mersinger. Some predictions platforms are even suggesting former Binance US CEO Brian Brooks and former SEC commissioner Paul Atkins as potential candidates.

Whoever Trump nominates will undergo intense scrutiny by the US Senate, which has to confirm all commission members. If a nominee is seen as weak on enforcing securities laws against crypto companies, they may face difficulty getting confirmed. Even if a pro-crypto nominee is confirmed, the ongoing lawsuits against various companies may not be immediately dropped, as these decisions require a vote amongst commission members. Experts expect these cases to eventually be settled rather than going to trial.

In conclusion, Gensler’s departure marks a significant moment for the crypto community, with the incoming SEC Chair nominee poised to face notable challenges as they take on this crucial regulatory role.