US SEC Chair Gensler's departure countdown begins, report suggests law firm partner could be new head
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US SEC Chair Gensler's departure countdown begins, report suggests law firm partner could be new head
Media reports indicate that Trump's transition team is preparing a list of candidates for financial regulatory roles, with the SEC chair expected to be selected from among a group of lawyers.
Navigating Web3 tides with focused insightsBy Zhao Yuhe, Wall Street Insights
According to sources, Richard Farley, a partner at Kramer Levin Naftalis & Frankel, and Norm Champ, a partner at Kirkland & Ellis, are among the candidates being considered to succeed Gary Gensler as chair of the U.S. Securities and Exchange Commission (SEC).
Other media reports have also named Dan Gallagher, Robinhood’s chief legal officer, current SEC Commissioner Mark Uyeda, and former Commodity Futures Trading Commission (CFTC) Chairman Heath Tarbert as potential candidates.
Additional sources told media that former SEC Commissioner Paul Atkins and Robert Stebbins, a partner at Willkie Farr & Gallagher, are also under consideration. Reuters previously reported that Atkins served on Trump’s 2016 transition team and was a strong contender for the SEC chair role at that time.
Two sources indicated that Gallagher, Robinhood’s chief legal officer, is a leading candidate among executives from the cryptocurrency industry who contributed millions of dollars to support Trump’s Republican campaign. While Gallagher currently appears most likely to be appointed, discussions remain ongoing. Karoline Leavitt, Trump’s press secretary, said in a statement: “President-elect Trump will soon begin determining who will serve in his administration. These decisions will be announced when they are made.”
Media reports indicate that members of President-elect Trump’s transition team and other advisors have already begun meeting with potential candidates since Tuesday’s election. The discussions are still underway, and it may take several weeks before a final selection is made.
Whoever It Is, Expect Lighter Regulation
Analysts believe that regardless of Trump’s choice, the next SEC chair is likely to review major rules established during Gensler’s tenure and seek to reduce regulatory burdens on the digital asset industry in ways consistent with securities laws.
Gensler was nominated by current U.S. President Joe Biden in February 2021 and sworn in two months later. His term runs until 2026, but he has stated he will step down when the new Republican administration takes office.
During his campaign, Trump pledged to promote cryptocurrency development and reform the SEC to attract investment from the crypto sector. However, Gensler took a tough stance on the industry upon taking office, criticizing its disregard for SEC regulations. Reuters previously reported that crypto firms have been pushing for an SEC chair who would eliminate cumbersome regulatory policies.
Many analysts view Republican SEC Commissioner Hester Peirce, a known supporter of cryptocurrencies, as a strong candidate for the chair position. However, sources told media that she has privately told associates she does not wish to take the role.
Although Trump has not elaborated extensively on financial policy during this campaign, he repeatedly promised to cut "burdensome" regulations. Bankers and lobbyists expect a Trump administration to repeal or significantly weaken the Basel accords—rules requiring large banks to hold higher capital levels—and ease restrictions on mergers and acquisitions.
FDIC and Federal Reserve Leadership Could Also Shift
In addition, Trump could remove Michael Hsu, the acting Comptroller of the Currency, on his first day in office. However, reshaping top regulatory positions at the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC) board may take several months.
Among those being considered by Trump’s team for senior banking regulatory roles is Federal Reserve Governor Michelle Bowman. She has criticized Vice Chair for Supervision Michael Barr’s push for higher capital requirements and has advocated for loosening bank rules and oversight. Sources said Barr intends to serve out his term as vice chair, which ends in 2026, though it remains unclear whether Trump will attempt to remove him early.
Sources also said Travis Hill, the Republican vice chairman of the FDIC board and former counsel to the Senate Banking Committee, is on the list for senior banking regulatory positions. Hill also opposes the Basel rules. Additionally, Jonathan Gould, a partner at Jones Day who served as First Deputy Comptroller and Chief Counsel at the Office of the Comptroller of the Currency from 2018 to 2021, is under consideration.
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