Trump's Campaign: Changes for the SEC and Crypto Regulations in Sight

One of Donald Trump's most striking campaign promises centered on Gary Gensler, the current SEC Chair. Citing Gensler’s skepticism toward cryptocurrency, Trump stated that one of his first actions, if elected, would be to dismiss Gensler from his position. Now that Trump has indeed secured the presidency, Gensler's future at the SEC seems uncertain. This has sparked speculation about potential successors.

For instance, Galaxy Digital CEO Mike Novogratz speculated on who might fill the SEC chair role under Trump’s leadership. He mentioned two potential candidates: Hester Peirce, a Republican SEC Commissioner, and Daniel Gallagher, Chief Legal Officer at Robinhood.

“I know Peirce is likely throwing her hat in the ring. Robinhood's Chief Legal Officer is also being considered. I’m not certain the specific person matters as much as their openness to the crypto industry,” Novogratz told CNBC.

A known supporter of Kamala Harris during the election, Novogratz noted he believes Trump would prioritize appointing someone who supports the crypto sector. In light of Trump’s win, he added that he feels “more optimistic than ever” about the future of the cryptocurrency industry, now that a pro-crypto leader is in the White House.

Growing Optimism for Crypto Policy Shifts Under Trump’s Presidency

Novogratz emphasized that the future of the crypto industry in the U.S. is shaped heavily by major financial regulatory bodies, including the SEC, OCC, and FDIC. Leaders with a progressive and supportive stance on cryptocurrency could significantly change the industry’s trajectory.

Trump’s victory, in particular, is viewed as a turning point for crypto in the U.S. His administration is expected to push for regulatory reforms, encourage domestic crypto mining, and create a national Bitcoin reserve, all of which could reshape the digital asset landscape.

Novogratz also suggested that policies allowing banks to hold cryptocurrencies on their balance sheets could drive billions, if not hundreds of billions, of dollars in capital into the crypto market.

Profiles of Peirce and Gallagher as SEC Candidates

Both Peirce and Gallagher bring extensive regulatory experience to the table as potential SEC chairs.

Hester Peirce has been an outspoken critic of the SEC’s strict approach to crypto regulation under the Biden administration. She has argued that the agency is failing to support innovation by not providing clear guidelines and instead focusing primarily on enforcement. Peirce believes that treating crypto assets as traditional securities could stifle innovation and create unnecessary barriers to industry growth.

Daniel Gallagher, currently Robinhood’s Chief Legal Officer, advocates for a business-friendly regulatory approach, aligning with Trump’s emphasis on deregulation. At Robinhood, he has been involved in discussions around retail trading and crypto regulation, positioning him as a strong candidate for SEC leadership in a reform-driven agenda. Gallagher also served as an SEC Commissioner from 2011 to 2015, bringing direct experience in securities regulation.

Gallagher’s background and advocacy for regulatory reforms have earned him a respected standing in Republican circles, making him a “natural choice” for the SEC chair position, according to many insiders.

Outlook for the Crypto Sector with Trump’s Leadership

Trump’s win has fueled optimism among crypto supporters, as industry stakeholders anticipate policy shifts that could benefit digital assets. With new leadership at the SEC and potentially other key financial agencies, the U.S. crypto industry may see substantial regulatory shifts that foster innovation, attract capital, and position the country as a global leader in the digital finance space.