Now that Donald Trump is the president-elect of the U.S., a central part of his agenda involves the removal of Gary Gensler, the current Chair of the U.S. Securities and Exchange Commission (SEC).
Trump has promised to replace Gensler as one of his first actions upon re-entering office, a pledge that resonates with a significant portion of the cryptocurrency community.
However, achieving this objective may prove complex. Although prominent figures like Ripple CEO Brad Garlinghouse have already suggested replacements for Gensler, many experts believe the President can’t fire an SEC chair without the court.
What Will Happen to Gensler?
Traditionally, SEC Chairs have resigned with the advent of a new administration, though resignation is a matter of choice rather than a requirement. Legal experts suggest that a president does not possess the direct authority to remove the SEC Chair, given the commission’s independent agency status.
The Supreme Court has not ruled directly on this issue, leaving questions surrounding the president’s authority in such cases open to interpretation. Eleanor Terrett, a Fox Business journalist, noted that Trump’s options might be limited if Gensler refuses to step down voluntarily, potentially forcing Trump into a lengthy legal dispute if he attempts removal.
Gensler’s departure would likely require the president to take the case to court, where Trump would need to demonstrate valid grounds for Gensler’s dismissal. This could involve arguing that Gensler has exceeded his regulatory authority or failed in his duties, though proving such claims in court would require substantial evidence.
Gensler could be forced to step down if the court’s decision favors Trump. However, if the courts uphold Gensler’s right to retain his position, the president would face limits on this element of his regulatory agenda.
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The Cost of Staying in Office
Should Trump choose this legal path, Gensler may not be the only official targeted. Federal Reserve Chair Jerome Powell, for example, has already stated that he would resist any effort by Trump to replace him before the end of his term.
However, there is a price to pay if Powell and Gensler choose to stay. Terrett noted that they would have to pay the legal fees from their pockets, and added, “It’ll be an expensive battle to stay.”
Although the issue of firing an SEC Chair has yet to be directly addressed by the courts, Gensler lacks the incentive to remain in his position and it could cost him significantly if he chooses to remain the chairman.
The crypto world is already anticipating his resignation and replacement, and it seems it’s only a matter of time before the SEC’s reign of terror under Gensler ends.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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