Former President Donald Trump Targets SEC Chair Gary Gensler, Delaying Crypto Regulatory Relief Until 2026 - Analysis
In a recent development, former President Donald Trump has set his sights on US Securities and Exchange Commission Chair Gary Gensler, dubbing him as the biggest villain in the crypto industry. Despite Trump's promises to remove Gensler, it appears that the process may not be as straightforward as initially anticipated.
TD Cowen, a US investment bank, speculates that Gensler could potentially remain as a commissioner, leading to a delay in expected regulatory relief for the crypto sector until late 2026. The firm highlights the intricacies of SEC commissioner appointments, noting that a change in the White House typically triggers the appointment of a new leader.
With a current Democratic majority on the commission, the nomination of Commissioner Caroline Crenshaw for a second term is expected to secure the party's control beyond 2024. This could potentially hinder Trump's ability to appoint a new SEC commissioner until 2025, when a Republican commissioner's term expires.
TD Cowen suggests that Gensler may choose to stay on as a commissioner to prevent the GOP from gaining a majority. This decision could impact the progress of crypto policy, with potential challenges in adopting regulatory changes or settling legal cases with a Democratic majority still in place.
While Trump may attempt to remove Gensler from his position, the process could face legal challenges due to unclear protections for commissioners. Ultimately, this situation raises questions about the functioning of bipartisan commissions and the ability of presidents to dismiss opposing party members at will.
In conclusion, the ongoing power struggle within the SEC could have significant implications for the future of crypto regulation. Investors and market participants should closely monitor these developments, as they could impact the industry's trajectory and regulatory environment in the coming years.
