- The crypto industry is on the brink of an unexpected turn of events as pressures mount on President Joe Biden to withdraw from the 2024 presidential election.
- SEC Chair Gary Gensler, seen as a key adversary of the crypto world, has a term that extends till 2026, making his position a focal point should Biden resign or step down.
- Historical precedents and the intricate rules governing the SEC hint at a complex pathway for any potential change in leadership.
The potential resignation of President Biden could ripple through the crypto industry, possibly reshaping its regulatory landscape.
Mounting Pressure on Biden’s Candidacy
Amid escalating scrutiny about his age and cognitive abilities, President Joe Biden faces growing calls to reconsider his 2024 re-election bid. This development has enormous implications, particularly for the crypto sector, which has often found itself at odds with his administration’s regulatory stance.
Role of SEC Chair Gary Gensler
Gary Gensler, appointed as Chair of the SEC by Biden in 2021, has been a robust enforcer of crypto regulations. His tenure is marked by stringent oversight of digital asset exchanges and decentralized finance (DeFi) projects. Gensler’s term, however, is slated to end in 2026, adding another layer of complexity to the potential fallout from Biden’s resignation.
Complex Dynamics of SEC Leadership
The SEC operates under a structure where its five commissioners are appointed by the president, with Senate confirmation, serving staggered five-year terms. This setup means that a president can’t easily replace commissioners unless there’s proven misconduct. However, a new president has the authority to reappoint existing commissioners into different roles, such as the SEC Chair.
Historical Precedents and Current Realities
Historical instances where new presidents ascended office show reluctance to alter the SEC’s leadership quickly. For example, Lyndon Johnson and Gerald Ford did not replace their predecessors’ SEC Chairs immediately upon taking office. Given these precedents, even if Vice President Kamala Harris were to assume the presidency, swift changes in SEC leadership, particularly in favor of crypto, appear unlikely.
Potential Democratic Successors
If Biden withdraws and Harris becomes President, the dynamic within the SEC could shift. However, Gensler’s Democratic colleagues Caroline Crenshaw and Jaime Lizárraga have also shown strong regulatory stances against crypto. Crenshaw criticized spot Bitcoin ETFs, calling crypto markets rife with fraud. Lizárraga, having served as an advisor to Nancy Pelosi, has echoed Gensler’s regulatory rigor.
Conclusion
The unfolding scenario within the Democratic Party highlights a critical period for the crypto industry. Whether it’s Biden, Harris, or a different leader come January 2025, the president’s decisions will be pivotal for the regulatory landscape of digital assets in the United States. The crypto community should prepare for continued scrutiny but also potential shifts in policy depending on the leadership dynamics at the SEC.
