Donald Trump Can't Fire Gary Gensler, But Pro-Crypto Policies Means Industry Is On The Verge Of 'A Golden Era'

A new report highlights that while President-elect Donald Trump's return to the White House signals potentially favorable shifts for the cryptocurrency sector, he cannot directly fire SEC Chair Gary Gensler.

What Happened: Constitutional scholars assert that although Trump has pledged to create a more crypto-friendly regulatory environment, he is limited to appointing a pro-crypto commissioner to act as chair instead of Gensler, according to a report from Galaxy Digital.

Trump's electoral victory, combined with new majorities in Congress, is expected to support policies that ease the regulatory landscape for crypto, as noted by Galaxy.

Trump's inner circle includes prominent crypto advocates like VP-elect J.D. Vance, campaign supporter Vivek Ramaswamy and RFK Jr., all of whom hold pro-crypto views.

Trump's supporters also include influential figures in the crypto industry who have made strides in backing a friendlier approach to digital assets.

Galaxy's report notes the significance of a pro-crypto administration for the digital asset industry, emphasizing a series of anticipated regulatory adjustments.

In addition to possible leadership changes at the SEC, Trump is expected to appoint new heads at agencies like the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC), which could enable banks to engage more directly with digital assets.

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Galaxy suggests that "bank regulators could release guidance to specifically prohibit the unfair targeting of specific industries," as they did during Trump's first term, which would pave the way for banks to participate in crypto transactions and custody.

The report also highlights the political influence of crypto-backed candidates, with high-profile victories such as Bernie Moreno (R-Ohio) unseating Sherrod Brown (D-Ohio), former chair of the Senate Banking Committee.

Crypto PACs spent millions supporting Moreno, sending a "strong message that opposing crypto is a losing position politically," according to Galaxy's analysis.

Further regulatory relief could open doors for institutional investors, as the SEC may pause ongoing crypto enforcement actions and consider new exemptions for digital asset projects.

Galaxy expects that regulatory alignment between the SEC and CFTC would support expanded access to digital assets for traditional financial institutions.

This could allow the industry to attract broader institutional interest, including banks and major custodians.

What’s Next: The Galaxy report anticipates that crypto's growing mainstream acceptance and clearer regulatory frameworks will be key areas of interest at Benzinga's Future of Digital Assets event on Nov. 19.

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