Vice President Kamala Harris’ transition team is reportedly considering replacements for SEC Chair Gary Gensler, according to sources familiar with the matter. This move is in line with Republican candidate Donald Trump’s vow to fire Gensler. However, Harris is yet to confirm such a decision in public.
Who will Kamala Harris Choose to Replace Gary Gensler?
Two names being discussed are Georgetown University Law professor Chris Brummer and Erica Williams, chair of the Public Company Accounting Oversight Board (PCAOB). Both are seen as more open to blockchain and Web3 domain than Gensler, who has faced significant criticism from the crypto industry.
As of now, VP Kamala Harris has not confirmed any plans to remove Gary Gensler or whether either candidate is being seriously considered. The focus of her campaign is currently centered on increasing voter turnout and addressing key policy issues.
According to a source close to the deliberations, Harris is wary of embracing a pro-crypto stance before the election, as it could alienate the progressive base, many of whom view cryptocurrency skeptically.
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Here’s two of the potential picks ⬇️⬇️⬇️https://t.co/NqvC43dCRY
— Laura Shin (@laurashin) October 18, 2024
The source said, “It’s very unclear who is currently the favorite. [The] Harris campaign has concerns that coming out too positively about crypto before the election would lose her votes from the progressive wing that think crypto is a ‘scam’ and wouldn’t gain her actual new swing voters,” according to a report by Unchained Crypto.
Harris’ transition spokesperson confirmed that no personnel decisions are being made before the election. “The Transition is not doing any personnel selection pre-election,” they said. They added, “Instead, we are focused on setting up the infrastructure necessary to be ready.”
Can Harris or Trump Actually Fire Gensler?
The legal question of whether a president can directly dismiss the SEC chair remains uncertain. Former President Trump has vowed to fire Gensler on the first day of his presidency if elected. However, legal experts widely agree that a president can demote the SEC chair to the role of commissioner.
Historically, SEC chairs tend to step down when a new president takes office, making it unlikely Gensler would remain in a reduced role. Brummer, a regulatory expert, recently launched Bluprynt, a company focused on regulatory compliance for crypto firms, particularly with the EU’s MiCA regulations.
He has extensive experience in financial regulation, having served on the Biden administration’s Treasury transition team and been nominated by President Obama to head the Commodity Futures Trading Commission in 2016. One source commented that Brummer “would be the biggest peace offering to crypto the Harris campaign could bring up.”
Williams, while not as vocal on cryptocurrency, has overseen significant fines during her tenure at PCAOB. She has also faced criticism for not acting on potential issues with FTX before its collapse. Under her leadership, the PCAOB formed an inspection team to monitor emerging audit risks, including those related to crypto.
Both candidates would be the first person of color to chair the SEC. Other names mentioned in connection to the position, though unconfirmed, are also individuals of color.
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