Can Trump Really Fire SEC Chairman Gary Gensler? The short answer is yes and no. For the unversed, Trump promised he would fire Gary Gensler on his first day in office if elected. Now that Trump has won and is set to take office on January 20, Gensler’s possible removal could become a major issue, especially as the ongoing Ripple case continues to heat up.
As head of an independent agency, the SEC chairman cannot be removed at the president’s discretion. To fire Gary Gensler, the president needs a “substantial” reason, such as documented inefficiency, dereliction of duty or misconduct. Author and economist Timothy Peterson took out his X-handle and listed the reasons why Gensler could be fired:
SEC Twitter hack (January 2024)
The SEC’s Twitter account was hacked in January 2024, spreading false information that the SEC had approved a Bitcoin ETF. This caused the price of Bitcoin to spike and then fall sharply, leading to $19 billion in losses for investors. The SEC’s inability to protect its accounts raised serious concerns about its competency.
Ripple Court ruling (July 2023)
In July 2023, a judge ruled against the SEC in the case against Ripple Labs, rejecting the idea that XRP should be considered a security. This decision exposed the reach of the SEC and resulted in $3.75 billion in losses for XRP investors due to price suppression by the SEC.
Grayscale Bitcoin ETF Rejection (August 2023)
The U.S. Court of Appeals ruled that the SEC’s rejection of Grayscale’s Bitcoin ETF was “arbitrary and capricious,” meaning it was an unfair and unwarranted decision. The SEC’s actions resulted in $75 billion in losses for Bitcoin investors.
DEBT box (2023-2024)
The SEC’s 2023 case against DEBT Box drew criticism after the agency made false statements to secure court orders. In 2024, a judge dismissed the case and ordered the SEC to pay $1.8 million in legal fees. The case caused $300 million in losses for investors.
Credit : coinpedia.org
