What happens next under Trump?

Gary Gensler, the high-profile and often polarizing chair of the U.S. Securities and Exchange Commission, announced his resignation, effective the day President-elect Donald Trump takes office.

Here’s the announcement on X:

Gensler’s decision is hardly unexpected for those attuned to Washington’s political rhythms. Leadership changes at federal agencies often coincide with the arrival of a new administration, especially when there’s an ideological shift.

Here’s a closer look at the situation.

Gensler’s crackdown on crypto

Although Gensler’s term was slated to run through 2026, his resignation aligns with these unwritten rules of political transitions.

Gensler’s tenure, which began in 2021 under President Joe Biden, has been anything but uneventful. Known for his bold and uncompromising regulatory stance, he led an unprecedented crackdown on the crypto industry—a sector he once described as “rife with fraud and hucksters.”

Under his leadership, the SEC initiated a record 46 enforcement actions against crypto-related entities in 2023 alone, a 53% increase from 2022.

Some of the crypto-related lawsuits filed seemed reasonable. For example, the SEC’s case against Terraform Labs involved allegations of a massive fraud scheme. In June, a federal jury ruled against Terraform and its co-founder Do Kwon. They were ordered to pay over $4.5 billion in penalties, the largest ever imposed in a crypto-related case.

While some applauded his efforts to bring order to the industry, Gensler’s critics often accuse him of regulatory overreach and stifling innovation, particularly when it comes to cases against Ripple (XRP) and Coinbase.

Trump, whose family launched a crypto startup this year, vocalized his disdain for Gensler on the campaign trail and pledged to replace him “on day one.”

Dan Gallagher, Robinhood Markets’ chief legal officer, was considered a possible replacement for Gensler, but he is no longer interested.

As the SEC prepares for this leadership change, the agency faces critical questions about its future direction. What does Gensler’s departure mean for financial regulation in the U.S.? Who will take the reins, and how will their approach shape the nation’s financial landscape?

Social media reacts

When Gensler confirmed his resignation, social media — particularly crypto enthusiasts populating X — erupted with tweets that ranged from bitter resentment to cautious relief.

Many within the crypto community didn’t hold back, particularly supporters of Ripple. Known as the “XRP Army,” they had long blamed Gensler for the SEC’s aggressive lawsuit against Ripple Labs, which tanked the value of XRP and dragged the community into a years-long legal battle.

“Congratulations to the XRP Army—this is the moment we’ve been waiting for,” one XRP supporter tweeted.

Criticism extended beyond XRP, with retail investors calling Gensler’s tenure “the most destructive period in SEC history.” They cite his initial resistance to approving a Bitcoin (BTC) ETF and his handling of smaller investor disputes, such as the MMTLP stockholder case.

Adding to the backlash, the same post referenced a federal judge’s reported reprimand of the SEC in another enforcement case, framing it as a reflection of Gensler’s heavy-handed and controversial approach.

“Thank you for protecting no one from actual scams. You set America back years in crypto,” another social media user quipped.

High-profile industry figures also joined the chorus of criticism. Justin Sun, the founder of Tron (TRX), took a harsher tone, calling Gensler’s resignation “too late” and lamenting the “massive damage” he allegedly inflicted on U.S. markets and the global economy.

In the end, Gensler’s exit isn’t just the close of a contentious chapter; it’s the start of a critical transition for the SEC and the industries it oversees.

Who will lead the SEC next?

With Gensler’s resignation, the focus is shifting to who will succeed him—a decision that could reshape the future of crypto regulation in the U.S.

Journalist Eleanor Terrett of Fox Business has suggested that the next SEC chair may bring a fresh outlook on crypto.

According to her sources, the incoming administration is prioritizing a candidate who is “pro-crypto” yet equipped to handle the SEC’s broader responsibilities, including oversight of public companies, stock and bond markets, and private funds.

Among the leading contenders is Paul Atkins, a former SEC commissioner known for his free-market philosophy and favorable stance on crypto.

Charles Gasparino of Fox Business reported that Atkins is currently viewed as a frontrunner, buoyed by strong support from both the business and crypto communities.

Atkins’ approach stands in stark contrast to Gensler’s enforcement-heavy style. While critics argue that Atkins may be too lenient, his supporters believe his leadership would promote innovation by lowering regulatory barriers.

Another prominent name in the running is Robert Stebbins, a partner at Willkie Farr & Gallagher and former SEC General Counsel under Jay Clayton.

Stebbins is widely regarded as a steady and pragmatic candidate, offering deep legal and regulatory expertise. While his pro-crypto stance is less favorable than Atkins’, his previous experience at the SEC gives him credibility with both policymakers and financial institutions.

Teresa Goody Guillén is also emerging as a potential candidate. A veteran of the SEC and a partner at BakerHostetler, where she co-leads the blockchain practice.

Crypto companies are reportedly advocating for her nomination, confident that her dual experience as an SEC insider and blockchain advocate would bring a balanced perspective to the role.

Brian Brooks, the former Acting Comptroller of the Currency, is another notable name being floated for key financial regulatory positions, including the SEC chair.

Dubbed the “Crypto Comptroller” for his blockchain-friendly policies during his tenure at the OCC, Brooks has been a vocal proponent of integrating crypto into mainstream banking.

While Terrett noted that Brooks is under consideration for multiple roles beyond the SEC, his appointment here could signal a transformative period for crypto regulation.

Interestingly, the shakeup may not be limited to the SEC. Terrett suggests that the Trump administration is exploring an expanded role for the Commodity Futures Trading Commission in crypto oversight.

Such a move could involve splitting regulatory responsibilities between the SEC and CFTC—or even transferring primary authority to the CFTC entirely.

However, as Terrett pointed out, this shift would require a colossal increase in funding for the CFTC, which currently lacks the resources to manage such an expansive mandate. For now, speculation continues.

Preparing for the change

Gensler’s resignation has left crypto industry insiders speculating about what lies ahead, with many experts pointing to a mix of challenges and opportunities.

Slava Demchuk, CEO of AMLBot, in a conversation with crypto.news talked about one of the most pressing issues: the lack of clear rules for crypto in the U.S., especially compared to the EU’s Markets in Crypto-Assets Regulation.

“Without clear regulations, crypto companies have been left in limbo, unable to fully understand compliance requirements or attract major institutional players.”

One particularly thorny problem is crypto companies’ struggles to access banking services. Niko Demchuk, Head of Legal at AMLBot, described how banks in the U.S. are often hesitant to work with crypto firms due to the risk of regulatory fallout.

“Banks don’t want to associate with companies that might be out of compliance. Even indirect ties to crypto can bring scrutiny or fines, creating bottlenecks for the industry, making it difficult for businesses to perform everyday financial operations.”

If the next chair adopts a more crypto-friendly stance, there’s potential for key improvements, including clearer regulations, better access to banking, and a more welcoming environment for innovation.

The prospect of a regulatory framework similar to the EU’s MiCA is also gaining traction. Experts believe that such a framework could bring greater consistency to the U.S. market, addressing issues like cybersecurity, anti-money laundering, and market manipulation.

For crypto companies, this transitional period is an opportunity to get ahead and focus on strengthening compliance systems, enhancing know-your-customer processes, and investing in tools like transaction monitoring.

“Businesses need to be proactive. Regulatory changes are coming, and those who are prepared will have a smoother adjustment,” Demchuk added.

For crypto firms, the time to act is now—because what comes next could reshape the future of the crypto industry in the U.S. and across the globe.