President-elect Donald Trump has an important decision to make soon as the Chairman of the United States Securities and Exchange Commission (SEC), Gary Gensler, has said that he will be resigning from his role as the head of the regulatory agency once Trump takes office.

“I thank President Biden for entrusting me with this incredible responsibility. The SEC has met our mission and enforced the law without fear or favor”, Gensler commented in a press release published on the SEC’s website last week.

The crypto industry is cheering this decision as Gensler has long been considered a hostile figure and a roadblock to the sector amid his decision to prosecute and antagonize multiple companies in the industry during his tenure.

After donating tens of millions of dollars to get Trump and pro-crypto Senate and House representatives elected, the sector will likely have a say on the President-elect’s pick for this important role.

Trump’s transition team has reportedly engaged directly with crypto industry leaders to seek their input and recommendations for the agency’s top leadership position.

A figure that emerges from within crypto circles would likely favor policies and regulatory actions that bring clarity to companies within it while also protecting consumers from the rampant number of scams and fraudulent projects that have inflicted damages on the market’s credibility for years.

Shortlisted Candidates Include People Within the SEC and Former Agency Officials

Trump’s alternatives would include a wide range of individuals with a track record of crypto-friendly perspectives. The most likely contenders include:

  • Paul Atkins, former SEC commissioner.
  • Brian Brooks, former acting US Comptroller of the Currency.
  • SEC commissioner Mark Uyeda.
  • Robert Stebbins, Former SEC general counsel.
  • Brad Bondi, global co-chair of investigations and white-collar defense at Paul Hastings law firm.

Each of these candidates brings unique perspectives and experiences that could potentially transform the SEC’s approach to digital assets.

Also read: Trump Set to Appoint Droves of Pro-Crypto Candidates to Key Roles

Mark Uyeda has been particularly vocal about the need for regulatory clarity and innovation. In public statements, he has explicitly criticized the current administration’s “war on crypto” and outlined a three-step plan to position the United States as a global leader in cryptocurrency regulation.

His proposed strategy includes providing a clear regulatory framework, establishing safe harbors for innovation, and developing a comprehensive approach to digital asset oversight.

Cabinet Members Picked by Trump Are Also Supportive of the Sector

Trump’s cabinet could also be filled with crypto-supportive figures as well. For example, the President-elect has picked billionaire Howard Lutnick as its nominee for Secretary of Commerce. Lutnick leads a company that provides services to Tether – the issuer of the popular stablecoin USDT.

Moreover, Vice President JD Vance and even the co-leader of the Department of Government Efficiency (DOGE), Vivek Ramaswamy, are all pro-crypto figures alongside one of Trump’s most influential and wealthy supporters – Elon Musk.

These appointments suggest Trump’s commitment to creating a government that fully supports a positive environment for this specific sector. The industry as a whole sees his victory as a once-in-a-lifetime opportunity to make the US the leading voice in the digital asset space.

The Gensler Era Crippled the Industry’s Growth

Gary Gensler’s tenure at the SEC has been characterized by aggressive enforcement and a restrictive interpretation of securities laws that gave the agency a de facto power over cryptocurrencies.

Industry leaders, including prominent figures like Tyler Winklevoss, have described Gensler’s approach as “evil” and systematically designed to stifle innovation. Naturally, industry leaders like Winklevoss (who co-founded Gemini with his twin) have tremendous financial interests in deregulation so take their statements with a grain of salt.

Gensler maintained a hardline stance that effectively classified nearly all cryptocurrencies, except Bitcoin and Ethereum, as securities subject to SEC jurisdiction.

This interpretation created significant regulatory uncertainty and legal challenges for crypto companies and resulted in numerous lawsuits against companies that tried to offer these digital assets through various means.

Although Gensler also gave the green light to products like spot Bitcoin and Ether (ETH) exchange-traded funds (ETFs) recently his views of the sector were considered hostile to its growth.

He was even accused of overreach by executives from within the crypto industry and pro-crypto legislators who claimed that the agency’s actions could be classified as “regulation by enforcement” as digital assets have unique characteristics that should be considered to the point that they may need separate legislation (or at least guidance) to be regulated appropriately.

Trump’s campaign promises directly addressed these frustrations. At a major crypto conference in Nashville, the President-elect pledged to fire Gensler and appoint an SEC chair committed to “building the future, not blocking the future.”

This rhetoric resonated deeply within the crypto community and signaled a potential paradigm shift in regulatory approach.

Trump’s pro-crypto views and his willingness to make changes within the government’s ranks to back his promises are some of the reasons why the crypto market has experienced a significant surge ever since he was elected.

The price of Bitcoin (BTC) has come close to the $100,000 mark in the past couple of weeks while the market value of all cryptocurrencies also surpassed $3 trillion for the first time ever as Trump’s win is considered a pivotal moment to the sector that could propel the market value of digital assets in the next four years.

Republican Majority in Congress Will Likely Back Trump’s Pro-Crypto Agenda

Industry leaders like Brian Morgenstern from Riot Platforms expressed their confidence that the entire crypto ecosystem will experience a significant after Trump enters the Oval Office and starts to appoint officials.

Moreover, the Republican majority in the Senate and the House of Representatives almost guarantees that Trump’s administration will manage to pass pro-crypto legislation shortly after he takes office.

The selection of the next SEC chair represents more than a simple leadership transition. It symbolizes a potential reset in the relationship between the federal government and companies in the crypto industry that could define the future of the United States in the global digital asset space.

Throughout this election cycle, the sector has evolved from a relatively immature and fragmented mass of companies to a powerful political force that has shaped Washington in its favor.

As the transition unfolds, the crypto community watches with anticipation, hoping that a new leader at the SEC will prioritize innovation, provide clear regulatory guidance, and create an environment that allows digital assets to flourish while fostering and enforcing appropriate investor protections.