The Harris transition team is vetting candidates to replace Gary Gensler as Chair of the Securities Exchange Commission (SEC), according to two sources close to the deliberations.
Unchained has learned of two potential replacements, Georgetown Law professor Chris Brummer and Chair of the Public Company Accounting Oversight Board (PCAOB) Erica Williams, who are said to have more favorable views on crypto than Gensler.
The Vice President hasn’t committed to replacing Gensler publicly or privately and it is uncertain how seriously she is considering Brummer, Williams, or other potential candidates in the mix. Currently, Harris’ team is more focused on getting out the vote, due to the short time she has been a candidate and other policy issues at stake.
“It’s very unclear who is currently the favorite,” one of the sources said. “[The] Harris campaign has concerns that coming out too positively about crypto before the election would lose her votes from the progressive wing that think crypto is a ‘scam’ and wouldn’t gain her actual new swing voters.” Brummer did not respond to multiple requests for comment. A spokesperson for PCAOB declined to comment, speaking on Williams’ behalf.
“The Transition is not doing any personnel selection pre-election,” according to a Harris transition spokesperson. “Instead, we are focused on setting up the infrastructure necessary to be ready.”
It is unclear in the law whether a president can directly “fire” the SEC Chair from the commission entirely, despite former President Trump promising to “fire” Gensler on day one of his presidential term if he wins. However, it is broad legal consensus that a president can demote the Chair to the position of Commissioner. Chairs have also historically vacated their post if a new president comes to power during their term, and many believe it unlikely that a former Chair would choose to stay on as a less-powerful Commissioner.
Brummer: ‘The Biggest Peace Offering to Crypto’
Brummer launched a company called Bluprynt this spring focused on regulatory compliance for crypto firms, specializing in white paper compliance with European crypto regulatory regime MiCA.
He is also the faculty director of Georgetown’s Institute of Economic Law, where he has taught since 2009. He is a member of the Fannie Mae Board of Directors, a nonresident senior fellow of the Global Business and Economics Program at the Atlantic Council, and a visiting professor at the University of Pennsylvania School of Law and Columbia Law School.
Brummer, along with several others, volunteered as part of the financial regulation transition team for the Biden administration, focusing on the Treasury. Brummer was also nominated by President Barack Obama to lead the Commodity Futures Trading Commission in 2016 before his nomination was rescinded by President Donald Trump, and was reportedly a top contender for CFTC chair under the Biden administration.
One source familiar with Brummer but not whether he’s being vetted for SEC chair said, “On paper, [Brummer is] better qualified than Gary Gensler,” and “would be the biggest peace offering to crypto the Harris campaign could bring up.”
Williams: Less Outspoken on Crypto
Meanwhile Williams, as chair of the PCAOB, has worked in conjunction with the SEC to protect investors, registering firms that prepare audit reports, setting audit standards, and investigating and disciplining firms for violations of these rules and laws.
The Board under her leadership imposed a record $25 million fine on KPMG Netherlands for exam cheating in its internal training program and a $900,000 fine for quality control violations at a Colombian affiliate of Deloitte, levying more than $20 million in fines in 2023.
She has previously served as deputy chief of staff to three SEC chairs, served as special assistant and associate counsel on financial and economic policy to President Barack Obama, and was a litigation partner at law firm Kirkland & Ellis before joining the Board.
Though Williams has not been particularly outspoken about crypto, the Board created an inspection team focused on emerging audit risks, including cryptocurrency, under her leadership. Williams came under fire for allegedly overlooking the flaws of FTX prior to its collapse in late 2022, leading her to clarify at a November conference that the PCAOB only has jurisdiction over the audits of public companies and broker dealers.
One of the sources said that both have progressive visions for financial regulation and would both support crypto legislation but diligently pursue bad actors in the space. They added that they are also known to have congenial demeanors in the workplace, a sharp contrast to Gensler who is widely understood to be difficult to work with by many of his direct reports.
Both would make history as the first non-white chair of the Commission. Other potential candidates that Unchained learned of from credible sources, but was unable to substantiate, were also people of color.
