Gensler could remain at SEC under a Trump presidency, crypto lawyer says

Mike Selig, a crypto attorney, said Gary Gensler could still stay on at the Securities and Exchange Commission (SEC) even if Donald Trump becomes president. However, he added that Trump could appoint a new SEC chair, effectively limiting his authority with the federal agency.

Also Read: Why did this US crypto company declare independence from the SEC?

His comments come in light of recent debates about whether Trump can end the SEC’s anti-crypto campaign if he becomes president. Trump, who positions himself as a pro-crypto candidate, has identified Gensler as one of those against the industry.

Trump’s promise to end SEC death-grip on crypto could happen on Day 1

According to Selig, a partner at the law firm Willkie Farr and Gallagher LLP, US Presidents can designate a new chair of the SEC immediately after they take office. Should Trump choose to do this, Gensler will lose most of his powers and become an SEC commissioner.

However, he added that a new president cannot force out an SEC commissioner. Therefore, Gensler could remain on the SEC board until his tenure ends in June 2026. So, if he stays on as a commissioner, he can vote on key decisions and express his opinions on crypto-related policies.

Selig stated:

“POTUS can’t force the ex-Chair to resign as a Commissioner, but the ex-Chair would lose the ability to set the SEC agenda, appoint division directors, etc.”

Selig’s comments clarify the debate on crypto Twitter about whether Trump can replace Gensler when he becomes president. Legal experts claim that the law states that a president can only remove a commissioner for good cause.

Who could be the new chair?

Meanwhile, the question of who could become the chair if Trump wins the election remains open. Unless any of the commissioners resign, there will be no vacancy until 2025, when Commissioner Hester Pierce’s term is meant to end.

This means that Trump might be forced to designate his chair from among the existing commissioners. The two most likely choices are Hester Pierce and Mark Uyeda, who are both pro-crypto. Pierce, in particular, has been critical of the SEC and Gensler. Still, there have been instances where a Republican-appointed commissioner was appointed as a chair by a Democrat president.

Also Read: US Rep. Tom Emmer wants SEC Chair Gary Gensler fired

However, many believe that Gensler will likely leave the SEC if Trump wins the election. Historically, the SEC chairs have resigned when there is a change in administration, just as Jay Clayton did in 2020 when Trump lost the election. With Gensler also facing the possibility of a demotion if Trump wins, he is expected to resign once there is a change in administration.