Blockchain advocacy group CEDAR Innovation Foundation has urged Securities and Exchange Commission (SEC) Chairman Gary Gensler to leave his position at the agency. In its letter on November 18, the group stressed that the SEC boss is defying tradition by still being at the helm of affairs at the agency.
The group claimed that Gensler is clinging to power by not following the steps of his predecessors. The group also claimed he is defying tradition by still maintaining his job despite the emergence of a new administration. The group noted that the SEC Chair in the last two administrations resigned two weeks after the election.
The group also stressed that there have been other individuals and groups calling on the SEC boss to resign. Individuals such as billionaire Mark Cuban, and former SEC official John Reed Stark have urged him to leave the post. At the same time, groups like the American Securities Association have also echoed the same sentiments.
Blockchain advocacy group details Gensler’s mistakes
Despite calls from both individuals and entities in the crypto sector for him to resign, Gary Gensler is yet to make an official announcement to that effect. However, he has dropped several hints in his public statements, with observers noting that he could leave the role soon.
At a recent event where he was one of the guest speakers, Gensler highlighted the ups and downs of his administration, noting how the agency dealt with the sector. He also said that he intends to leave regulations for others, opening up a likelihood of him leaving the position soon.
During his closing remarks, Gensler hailed the agency’s work under his tutelage. “It’s been a great honor to serve with them, doing the people’s work, and ensuring that our capital markets remain the best in the world,” he said. The sentiment is that the statement implies he is leaving, while many noted that he is on a legacy tour.
The letter didn’t hold back in describing the ills the agency committed while Gensler was boss, highlighting the Ripple and the Debt Box cases. It signified a tenure characterized by incompetence, arrogance, and actions to stifle innovations. Other groups also share this view, with some noting that the legacy tour is futile as people will not remember him after he is gone.
Questions arise over Gensler’s replacement
While there have been talks about Gensler resigning, the bigger talk is about the person replacing him. Although there has been no official nomination, several names have been mentioned in places with interest. Leading the race for the position is legal chief at Robinhood Dan Gallagher, former comptroller of currency Brian Brooks, and Mark Uyeda.
Aside from those, former and current SEC Commissioners Paul Atkins and Hester Peirce have also been named. However, the predictions market puts Brooks ahead with a clear margin over the rest. Brooks has a 48% chance, while Gallagher’s odds are at 25%. Uyeda’s odds are quite small, coming third at 5%. Still, it is early days, but everyone expects a crypto-friendly individual to take the reigns.
Gensler’s tenure is set to expire in 2026, but if the rumors are right, he might not wait till 2025. There is also a belief that his inability to fix a resignation timeline is why Trump has yet to nominate someone for the position. Although Trump said his first act would be to remove Gensler as SEC boss, it is not quite easy. He can only fire him based on neglect of duties and other offenses. However, Gensler can be demoted to a Commissioner and be replaced until his tenure expires in 2026.