After the possible new administration of the USA, the future of SEC Chairman Gary Gensler became a matter of discussion. There has been speculation about the possibility of a Donald Trump or Harris administration making changes to SEC leadership. However, crypto Lawyer Dave Michaels pointed out legal details that prevented Gensler from being removed immediately.
May Not Have Power to Dismiss
Michaels took to social media to address the question of whether a chairman change could unseat SEC Chairman Gary Gensler. 1935 Humphrey’s Executor v. He noted that the United States case prevents removing independent agency heads, such as FTC commissioners, based solely on executive preference.
Although this decision directly implicates the FTC, it could be interpreted similarly, given the SEC’s similar independent structure and regulatory oversight functions.
This precedent shows that independent agency leaders like Gary Gensler are difficult to dismiss without cause. This protection is designed to protect heads of regulatory agencies from political influence and executive changes.
“A 1935 Supreme Court case protected an FTC commissioner from presidential removal. “He didn’t talk about the SEC, but the modus operandi and independence across the two commissions are similar.” –Dave Michaels
However, Michaels noted that historically SEC chairmen have resigned when an opposing political party came to power and allowed the new administration to appoint a compatible successor. He added that this practice could influence Gary Gensler’s decision in the event of a leadership change.
Will Cryptocurrencies Relax?
The change of SEC Chairman could affect the regulatory approach towards cryptocurrencies. It is known that during the Gary Gensler era, compliance costs for crypto companies exceeded $400 million and the SEC’s aggressive supervisory actions were criticized in the industry.
In particular, former SEC official Marc Fagel said the SEC is considering Ethereum called Immutable. 
$2,438 He criticized the sudden Wells Notice decision regarding the based gaming company. Fagel called the SEC’s abrupt approach “risky,” noting that companies need extensive communication before receiving such notices.
The crypto community is predicting that Donald Trump may appoint Robinhood CLO Dan Gallagher as SEC chairman, which could reshape the SEC’s approach towards crypto assets. It is hoped that the new leader will introduce clearer regulatory guidelines and be able to encourage innovation in the crypto sector.
It is known that if Gary Gensler does not resign from his position, Donald Trump will have limited options to remove the Chairman of the SEC and may force him to resign by redistributing responsibilities within the SEC. And of course, above all, Trump must be able to win the election.
These possible changes to the SEC Chairman’s seat could have significant impacts on the future of crypto markets and the regulatory environment. Trump said that if he won the elections, one of his first actions would be to fire Gensler.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
