Trump hints at pushing through SEC chair with recess appointment

As a seasoned crypto investor with over two decades of experience navigating the tumultuous waters of financial markets, I find myself intrigued by the potential changes at the helm of the SEC under President-Elect Trump. While the Constitution grants the President significant powers, including the ability to make recess appointments during the Senate’s absence, the practical implications and long-term effects of such a move are far from clear.


The President-elect of the United States, Donald Trump, has indicated that he may circumvent the traditional Senate confirmation procedure for his cabinet picks, potentially including a new chair for the Securities and Exchange Commission (SEC), currently held by Gary Gensler.

In a post on November 10th, Trump proposed that he had the sole power to decide which US Senator would serve as the majority leader in the Senate starting from January 2025, when the new Congress convenes. As a Republican, Trump expressed his desire for potential majority leaders to consent to recess appointments. This would allow them to bypass the confirmation process and assume roles of authority “straight away,” avoiding the need for questioning and examination by legislators.

Trump hints at pushing through SEC chair with recess appointment

According to the U.S. Constitution, the President can temporarily fill vacancies in offices when the Senate is not in session by issuing commission appointments that expire at the end of the next Senate session. During his first term, this power enabled Trump to appoint individuals who might not have been approved by the Senate, although these recess appointments were meant to be temporary and not a replacement for Senate approval.

In 2021, President Joe Biden put forth Gary Gensler’s name as a commissioner for the Securities and Exchange Commission (SEC). This nomination was approved by the Senate with a vote of 54 to 45, extending his term until June 2026. During Donald Trump’s initial presidency, he followed the constitutional procedure to appoint SEC commissioners but also attempted an unconventional method to outmaneuver the Republican-controlled Senate by making a recess appointment for the position of U.S. Attorney General.

Who will succeed Gary Gensler?

It remains uncertain whether any of Trump’s prospective choices for SEC chair could gather enough support in the Senate for confirmation, or if he plans to officially nominate anyone at all and resort entirely to recess appointments instead. At the point of this article’s release, Trump had not publicly announced any potential replacements for Gensler at the Securities and Exchange Commission.

If Trump had been reelected, one of his pledges to the cryptocurrency sector was to dismiss Securities and Exchange Commission (SEC) Chair Gensler on his first day in office. However, experts believe that Gensler cannot be removed without a valid reason. Sometimes, regulators voluntarily step down when there’s a shift in political parties at the White House, but Gensler himself has not hinted at resigning.

During President Barack Obama’s second term, Mary Jo White, the SEC chairman, completed her service on January 20, 2017 – the day of Donald Trump’s inauguration. Jay Clayton, who followed White, was confirmed by the Senate with a vote of 61 to 37. This process left the commission without a leader for approximately four months.

Read More

2024-11-12 20:31