Harris team identifies potential replacements for SEC chair, Gary Gensler

Sources say Kamala Harris’ transition team is currently consiering candidates to replace Gary Gensler as the Chair of the Securities and Exchange Commission (SEC).

Gensler has been a controversial figure, especially in the crypto industry, and with Harris eyeing a presidential win, it seems her team is looking to place someone with a more favorable stance on digital assets.

Georgetown Law professor Chris Brummer and Erica Williams, Chair of the Public Company Accounting Oversight Board (PCAOB), are the top names floating around as possible successors.

Brummer: The crypto candidate?

The VP hasn’t made any public or private statements about replacing Gensler, and we can’t say for sure how serious this is.

Right now, her focus is on securing votes, with her campaign aware that moving too positively on crypto could alienate progressive voters who are critical of the industry. 

Chris Brummer has an impressive resume. He’s a law professor at Georgetown and also runs a company called Bluprynt that deals with regulatory compliance for crypto firms.

That kind of background makes him a top contender for the SEC Chair role, especially in the eyes of the crypto community.

He’s got years of experience in financial regulation and policy and has worked with both the Biden and Obama administrations.

In fact, Obama nominated him to lead the Commodity Futures Trading Commission in 2016, but Trump withdrew the nomination.

He’s crypto-friendly, which makes him the direct opposite of Gensler. One source familiar with Brummer reportedly said, “On paper, Brummer is better qualified than Gensler and would be the biggest peace offering to crypto that the Harris campaign could offer.”

But here’s the thing. Harris can’t just fire Gensler. Legally, it’s unclear if a president can outright dismiss the SEC Chair, but they can demote them to a lesser position like Commissioner.

Historically, SEC Chairs have left once a new administration comes in, so Gensler sticking around post-Harris victory seems unlikely.

Williams: Not outspoken on crypto

Erica Williams, on the other hand, is less vocal about cryptocurrency. She’s been chairing the PCAOB, a watchdog agency that oversees audits of public companies.

Under her, the PCAOB has been cracking down on audit firms, handing out record-breaking fines. Williams doesn’t have the same deep crypto connection as Brummer, but she’s not a total outsider either.

And her track record shows she’s no pushover. In 2023, the PCAOB fined KPMG Netherlands $25 million for cheating on internal exams and slapped Deloitte’s Colombian affiliate with a $900,000 fine for quality control violations.

Despite this, Williams came under fire for allegedly missing key red flags at FTX before its collapse in 2022, though she clarified that the PCAOB only has jurisdiction over audits of public companies and broker-dealers.

Whoever Harris picks, they would make history as the first non-white SEC Chair. That alone could be seen as a major change in how the Commission operates.

Crypto’s role in the election

This all plays out against a backdrop of an increasingly volatile election season. Four mysterious accounts have bet $30 million on Trump winning the presidency, according to Polymarket, a crypto-based prediction market.

Polymarket has seen a surge in bets on Trump, with odds shifting heavily in his favor over the past few weeks. Some think this could lead Trump to claim the election was rigged if he loses, pointing to the odds as “proof.”

These four accounts—Fredi9999, Theo4, PrincessCaro, and Michie—reportedly made massive bets using crypto, all funded through deposits from U.S. crypto exchange Kraken.

Arkham Intelligence has been investigating the activity, and they believe these accounts might be linked, possibly run by the same entity.

Polymarket is now investigating this spike in betting, but it’s already raising alarms. Meanwhile, national polls have Harris up by just 2.5 points, but Trump’s odds on Polymarket are climbing, showing 60% compared to Harris’ 39%.