Anika Begay
Former President Donald Trump made headlines at the recent 2024 Bitcoin Conference in Nashville when he promised to “make crypto great again” – Included firing the chairman of the Securities and Exchange Commission (SEC) on his first day back in the White House.
Trump’s promise to oust crypto skeptic Gary Gensler has resonated with many in the crypto industry who have been concerned about the SEC’s coercive approach to regulating the cryptocurrency space. However, a closer look at the legal and political realities suggests that Trump’s promise may be easier said than done.
Legal Limits and Political Realities
According to a fortune relationshipThe SEC operates as an independent federal agency, whose commissioners, including the chairman, are protected by safeguards that prevent arbitrary removal.
Such guarantees presumably maintain the agency’s autonomy from political influence and ensure that regulatory decisions are based on legal and policy considerations rather than political pressure.
Looking at the legal landscape, a framework established by acts of Congress and legal precedent, most notably the 1935 Supreme Court case Humphrey’s Executor v. United States, limits a president’s ability to remove commissioners of independent agencies without cause.
Furthermore, political dynamics come into play. While the Senate confirms the SEC chairman’s nomination, removal does not typically require Senate approval.
However, any sudden decision to remove Gensler could spark opposition in Congress and be seen as setting “a dangerous precedent.”
The Long Road Towards a Pro-Crypto SEC Chairman
Despite calls from several quarters, including well-known figures in the cryptocurrency industry and high-level politicians such as Senator Warren Davidson, for Gensler to resign due to an alleged deficiencies In the cryptocurrency industry, the path to its removal is far from straightforward.
So barring an unexpected resignation from the anti-crypto chairman, the prospect of Gensler’s exit remains a long and painstaking process, according to Fortune’s analysis of the case.
That doesn’t mean Trump has no chance of removing Gensler. The report says if the administration can build a credible case for “inefficiency, dereliction of duty, or wrongdoing,” for example, pointing to the SEC’s legal struggles, such as its defeat in the high-profile case Case of ripple – then the President could initiate formal removal proceedings.
However, Fortune points out that even in this scenario, the process would be anything but quick. Experts estimate that the entire sequence of steps, from initial intent to final resolution, could take anywhere from six months to more than a year, a timeline that would likely exceed Gensler’s remaining term.
Featured image from DALL-E, chart from TradingView.com
