Crypto influencers are speaking about the potential impacts a change in U.S. Securities and Exchange Commission (SEC) leadership could have on the crypto industry.
“Looks bullish for crypto imo” said Crypto Influencer, Sweep on X.
SEC Chair Gary Gensler recently announced his decision to step down effective in January of 2025. Gensler has been known for his rigorous enforcement approach toward digital assets, a stance that has drawn criticism from industry leaders seeking clearer and more supportive policies.
As per Reuters, among those being considered for the SEC's top post is Dan Gallagher, a former Republican SEC commissioner who is currently the Chief Legal and Compliance Officer at Robinhood. Gallagher, who holds favor among cryptocurrency executives and donors, is seen as the leading candidate. His appointment could mark a turning point for the SEC’s stance on crypto, addressing longstanding industry concerns over Gensler’s regulatory policies.
During a House Financial Services Committee hearing on September 24, Congressman Wiley Nickel (NC-13) criticized Gensler’s regulatory approach, highlighting its impact on the U.S. economy and emerging technologies. “I hope you understand that your misguided approach to regulation by enforcement and open hostility to crypto is hurting our economy and sending American jobs overseas. You’ve single-handedly set us back years in our support for Web3 technology,” said Nickel.
Many within the industry view Gallagher favorably due to his alignment with deregulation, a stance that resonates with Trump’s broader promise to reduce financial “burdens.” Other candidates under consideration include Paul Atkins, a former Republican SEC commissioner, and Robert Stebbins, former SEC general counsel during Trump’s first term.
The proposed SEC leadership shift comes amid a broader push from Trump’s team to reconsider financial regulations across multiple agencies. High-level roles at the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC) are also under review, with candidates such as Federal Reserve Governor Michelle Bowman, known for her opposition to stringent capital requirements, being evaluated.
As these discussions unfold, the crypto sector remains hopeful that new leadership at the SEC will reverse Gensler’s policies, potentially fostering a more favorable regulatory environment for digital assets.
According to a 2024 Social Capital Markets report, the SEC has levied a total of $7.42 billion in fines on the cryptocurrency industry since 2013, with 63% of that amount collected in 2024 alone. SEC penalties against the crypto sector increased from $150.26 million in 2023 to $4.68 billion in 2024, marking a 3018% increase.
