Trump’s Win in 2016 Led to SEC Chair’s Resignation, Will Gary Gensler Follow?

On Nov 12, 2024

Bitcoin, the world’s largest cryptocurrency, surged to new heights following Donald Trump’s victory in the U.S. presidential election. The price of Bitcoin topped $75,000 in the aftermath of the results.

Trump’s election win has sparked widespread speculation about his stance on cryptocurrency regulation, especially regarding the U.S. Securities and Exchange Commission (SEC). In a bold statement, Trump declared that if he were elected president, he would fire SEC Chairman Gary Gensler, who has been criticized by many in the crypto industry for his regulatory stance.

Historical Context: SEC Leadership Changes Under Presidential Transitions

Trump’s comments about firing Gensler are not without precedent. Historically, SEC chairs have often resigned when a new president takes office. Attorney James Murphy aka MetaLawMan brought to attention the following details:

Nov. 8, 2016: Donald Trump won the U.S. presidential election.
Nov. 14, 2016: Mary Jo White, the then-chair of the SEC, announced her resignation.

Similarly:

Nov. 3, 2020: Joe Biden won the presidential election.
Nov. 16, 2020: Jay Clayton, the SEC chair under President Trump, announced his resignation.

Now, with Trump potentially set to return to office in 2024, speculation is growing about what could happen with Gary Gensler, who has led the SEC since 2021.

Can Trump Legally Fire SEC Chairman Gary Gensler?

When asked whether Trump could legally fire Gensler if he refuses to step down voluntarily, experts weighed in. Although the U.S. Supreme Court has not directly ruled on this matter, there is a long-standing tradition that SEC chairman resign when a new president is elected. However, some legal scholars, including justices from the Supreme Court and publications like the Harvard Law Review and Yale Journal of Regulation, believe the president has the authority to fire the SEC chairman if necessary.

As the election results settle, the crypto community is closely watching to see what actions Trump will take regarding the SEC and its future leadership. Currently, Ripple vs SEC is gaining attention with it’s latest appeal process.