As President Trump’s transition team moves forward, one big question remains: Who will replace the divisive Gary Gensler as head of the Securities and Exchange Commission?
One of the potential candidates, incumbent Commissioner Mark Uyeda, declined to comment on rumors that he might be tapped as acting or permanent chair, speaking at a Bloomberg Intelligence event on Tuesday. Still, he indicated that Gensler’s time is coming to an end, and Trump will likely tap a different chair. “I hope they follow this precedent,” Uyeda said.
Oueda, one of two Republicans on the SEC’s five-member commission, also called for a change from the Gensler era, which has been marked by industry pushback and lawsuits. “We need to pivot from where we were,” Uyeda said.
Lightning Rod Agency
Uyeda is an SEC veteran, having first joined the agency in 2006 and serving in various capacities, including as a senior adviser to Chair Jay Clayton during Trump’s first term. Uyeda was nominated by Biden and sworn in as commissioner in June 2022, just over a year after Gensler began his term as chair. As is the case with other agencies, the SEC’s governing rules seek to strike a balance between Republicans and Democrats, and specify that no more than three of its five commissioners can be from the same party.
The SEC has traditionally been a very technical agency that does most of its work out of the public eye. Gensler, however, has not been shy about seeking the spotlight, including high-profile enforcement actions against crypto companies, and aggressive rulemaking on button issues like climate change. This has resulted in open disagreements and lawsuits from the crypto industry, but also from other parts of the finance industry, including hedge funds and private equity firms.
Uyeda often engages in a course of scrutiny, particularly around the SEC’s approach to prosecuting crypto firms. On Tuesday, he criticized changes to a shorter comment period on rulemaking under Gensler, as well as rules that would have been too stringent, such as climate disclosures. “That’s what kills people. [rules] which are not effective but expensive,” said Uyeda.
Commenting on the wave of litigation the SEC has faced over the past two years, Uyeda said working with industry groups could have prevented public disputes. “The frustrating part from my perspective is that engaging a lot of them could have been avoided,” Uyeda said. “As regulators, while we know a lot, we’re not perfect in terms of our knowledge of what’s going on.”
As Gensler’s term ends, speculation has begun about who Trump might choose to replace him, with Robinhood Chief Legal Officer Dan Gallagher and former SEC Commissioner Paul Atkins among those. include those whose names have come up as possible candidates.
While Uyeda did not comment on the rumours, he said the coming year would likely bring changes for the agency under the new party’s rule. “We are likely to have some course corrections,” he said.
