The Truth Behind Trump’s Attack on SEC Chair Gensler Revealed – Could Impact Crypto Sector Until 2026
Former President Donald Trump has set his sights on SEC Chair Gary Gensler, dubbing him as the biggest villain in the crypto industry. Despite Trump’s bold claims, US investment bank TD Cowen predicts that Gensler may continue in his role as commissioner, potentially delaying regulatory relief for the crypto sector until late 2026.
Breaking down the situation, SEC chairs typically step down during a change in administration, allowing for the appointment of a new leader. Currently, with Democrats holding a 3-2 majority and Gensler as chair, the nomination of Commissioner Caroline Crenshaw for a second term is expected to secure the Democratic majority beyond 2024.
If Trump were to win a second term, he would not be able to nominate a new SEC commissioner until June 2025. Even then, the pick would not give the GOP a majority, as current Commissioner Hester Peirce is a Republican. TD Cowen speculates that Gensler may choose to remain as a commissioner to prevent the GOP from gaining a majority.
The report suggests that if Gensler stays, crypto policy could face delays, with regulatory changes and legal settlements becoming challenging with a Democratic majority in place. While Trump may attempt to remove Gensler, the protections for commissioners are unclear, potentially leading to litigation.
In conclusion, the situation highlights the complexities of bipartisan commissions and raises questions about the ability of presidents to remove opposing party members. This ongoing battle between Trump and Gensler could have significant implications for the future of the crypto sector and regulatory landscape.