With Donald Trump's victory in the presidential election, the crypto industry is set to see significant changes (at least if his campaign promises are anything to go by). First and foremost, this will affect none other than crypto skeptic Gary Gensler, whom Trump has vowed to fire on day one. This decision is fiercely supported by the crypto community, who have openly expressed dissatisfaction with the current head of the SEC.

As for Gensler's replacement, Trump’s shortlist includes Dan Gallagher, Hester Peirce, and Richard Farley.

Who’s Next? Gallagher, Peirce, and Farley First in Line

Dan Gallagher held various positions at the SEC before being appointed as a commissioner in 2011, where he served during Obama’s administration until 2015. 

Since then, he’s been putting his legal expertise to use in the private sector, eventually landing at Robinhood. For the past four years, he’s been busy as their Chief Legal Officer. And, like many in the industry, he’s eagerly awaiting the day Gensler is shown the exit.

“Instead of issuing rules that provide much-needed regulatory clarity, the SEC has opted to target individual firms, Robinhood included, through enforcement actions,” Gallagher remarked. “That’s not how Americans expect their government to operate.”

Reuters reported on November 7 that Gallagher is currently the Trump team’s top pick to replace Gensler.

Hester Peirce is another contender in the mix. Currently serving as an SEC commissioner, she was appointed by Trump in 2018 and has frequently criticized the agency’s aggressive stance on crypto.

In May, Peirce voiced:

The SEC is using enforcement as its primary tool for crafting policy in this area, and that’s simply not the most efficient way. It’s not just ineffective for the industry, it’s also inefficient for us as a regulator with limited resources.

Meanwhile, the New York Post reports that Richard Farley, a partner at the law firm Levin Naftalis & Frankel, is also being eyed by Trump’s transition team as a possible successor to the SEC chair.

It’s this last candidate, Farley, that seems to be stirring up the most mixed reactions from the public.

Wall Street vs. Crypto

Reports of a Wall Street lawyer potentially taking the reins as SEC Chair under a Trump administration have split the crypto community right down the middle. Some fear his deep ties to traditional finance might translate into an anti-crypto stance. Meanwhile, others remain cautiously optimistic, hoping his expertise could pave the way for “thoughtful regulatory frameworks” that the industry desperately needs.

Adam Cochran, a partner at Cinneamhain Ventures, was the first to throw shade on Richard Farley's potential nomination, labeling him “the worst of Wall Street” and throwing his weight behind Gallagher and Peirce instead. 

Cochran added:

 Some of the other names floated so far are banking insiders who’ve actively worked to cripple crypto’s growth.

On the other hand, network economist Timothy Peterson defended Farley, arguing that while Farley’s focus may be rooted in traditional finance, his views on regulation emphasize the need for balanced oversight that encourages innovation while keeping markets stable.

Echoing this sentiment, crypto trader Adios King saying that “Farley hasn’t taken a public stance on crypto yet, but his vast financial experience suggests he might take a pragmatic approach.”

Meanwhile, there’s also strong support within the community for Mark Uyeda, a current SEC commissioner. Uyeda has openly criticized Gensler’s heavy-handed approach to crypto regulation, calling it “a disaster for the entire industry.” Crypto attorney Jake Chervinsky believes Uyeda is a strong contender for the role.

Whether the new chairman turns out to be a Wall Street veteran or a crypto advocate, positive changes are in store for the SEC's crypto policy.

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