Former Deputy Director of the SEC’s Division of Enforcement, Jennifer Lee, said on May 2 that the possible re-election of Donald Trump is unlikely to change the SEC’s position on crypto.
Lee told CNBC that the SEC “vigorously pursued crypto cases” during Trump’s first presidential term and that it brought “daylight and regulation” to the fast-growing industry.
She predicted that the SEC would continue to “define its space and reach into crypto” if Trump were to serve a second presidential term.
The SEC is more consistent on whether specific cryptos fall within the agency’s scope, but the extent of its jurisdiction over the sector remains an open question, Lee said.
Lee did not comment on the SEC’s exact actions during Trump’s first term. However, then-SEC Chairman Jay Clayton critically brought a number of crypto sales under the purview of the SEC around 2018, including during a Senate hearing where he said all the ICOs he had seen were securities.
Clayton also believed that some cryptos, including Bitcoin, were not securities at the time.
Others expect a pro-crypto policy
Another ex-SEC member, former head of the SEC Office of Internet Enforcement John Reed Stark, has argued that the SEC under Trump may not be tough on crypto.
Stark said inside September that a Republican-appointed SEC chairman would likely “significantly slow down” the SEC’s crypto enforcement efforts. He also suggested that Trump could change his anti-crypto stance to accommodate single-issue crypto voters.
Stark noted that Trump has significant crypto holdings, a claim supported by financial filings related to Trump’s NFT ventures.
Others have suggested a similar light touch. In January, House Majority Whip Tom Emmer said a second Trump administration could be “friendlier” to crypto.
In March, Trump himself proposed a measured approach to crypto regulation.
Regardless of the policy change, a change in presidential administration could impact the SEC’s leadership. SEC chairmen generally resign during board changes. As such, current SEC Chairman Gary Gensler, whose term runs until June 2026, could resign in the event of a Trump victory.
The likely outcome of the US presidential election is unknown. FiveThirtyEight predicts that Trump and Biden have equal chances of winning, with Trump at 41.7% and Biden at 40.7%.