KEY POINTS
- Former Chairs Mary Jo White and Jay Clayton both resigned within weeks after a new president was elected
- Crypto users and industry experts believe it is best for Gensler to follow suit before he gets 'forced out'
- Gensler still has more than a year left in his term that marked Wells Notices and lawsuits against crypto firms
The U.S. Securities and Exchange Commission (SEC) has been at center of talks within the cryptocurrency space in recent days, especially after Donald Trump swept the 2024 U.S. presidential elections to pave the way for his re-entry into the White House.
In the last eight years, the top leaders of the Wall Street regulator have had a pattern of exiting the agency. Will current Chair Gary Gensler follow in his predecessors' footsteps?
How the Former SEC Chiefs Left the Commission
Since Trump declared winner in the 2024 presidential election, many crypto users and industry experts have urged the president-elect to keep his promise of firing Gensler on his first day at the White House.
However, the Constitution doesn't explicitly say the President has the authority to "fire" a SEC chief, raising questions about the validity of the Republican leader's promise to the crypto community.
Financial services lawyer James Murphy, who goes by MetaLawMan, took to X on Tuesday to provide the community a good look at the pattern of how the former SEC chairs left the Commission.
Time to say Goodbye Gary!
— MetaLawMan (@MetaLawMan) November 12, 2024
Nov. 8, 2016: Trump elected
Nov. 14, 2016: Mary Jo White (SEC Chair) announces her resignation
Nov. 3, 2020: Biden elected
Nov. 16, 2020: Jay Clayton announces resignation
Nov. 5, 2024: Trump elected
Nov. __, 2024: Hey @GaryGensler, we're waiting
He noted how, when Trump defeated Hillary Clinton to claim the presidency in 2016, then SEC Chair Mary Jo White announced her resignation less than a week after Trump's election.
A similar scenario took place in 2020, when outgoing President Joe Biden trumped over Trump. Then SEC chief Jay Clayton resigned from his post less than two weeks after Biden was elected.
"Time to say goodbye Gary!" MetaLawMan wrote, a statement that many crypto users agreed with.
What if He Refuses to Follow the Same Path?
Gensler has not said anything so far since the elections, but the crypto space is abuzz, debating whether or not he will step down soon.
Several users said it's possible Gensler will resist so he can "inflict as much pain as possible on this space." While some believe he will ultimately be "forced out" sometime next year.
When asked by an Ethereum (ETH) user if Trump can "legally" fire Gensler should the latter refuse "to go willingly," Murphy said that the Supreme Court has not had the chance to rule on the said question "because SEC Chairmen have followed tradition and resigned upon change of administrations."
Most crypto users who have felt demonized by the SEC under Gensler believe that he should choose "the path of least resistance," but it remains to be seen whether Gensler will actually do so, given he still has more than a year until his term ends.
For some in the crypto community, Gensler will be left with no other options but to leave his post "to save face" once Trump takes over the White House.
Why Crypto is Ecstatic to See Gensler Out
Under Gensler's leadership, the SEC has carried out a widespread "attack" on the crypto industry, issuing Wells Notices where it deems necessary and filing lawsuits against some of the most prominent crypto firms.
He has also repeatedly refused to clarify the legal status of altcoins, including Ether, even after the SEC approved Ethereum exchange-traded funds (ETFs). His refusal to explicitly state whether ETH is a security or a commodity has sown more confusion instead of providing clarity through the ETH ETFs' approval.
With a vast majority of the 2024-elected Congress being pro-crypto and Trump publicly promising support for Bitcoin and digital assets, Gensler is faced with a serious predicament of whether it's best to finish his term or exit the Commission without much drama.
