One of President-elect Donald Trump's key promises—to remove Gary Gensler and appoint a new chair of the U.S. Securities and Exchange Commission— might come to fruition as soon as January 20, the date of his inauguration.

Gensler took office less than 11 weeks after his appointment by President Joe Biden on February 3, 2021. He may also choose to resign before Trump's inauguration, which would allow the Democratic Party to appoint an interim chair.

Background on Gensler's Role

The possibility of a new SEC chair under a Trump presidency has created significant anticipation within the cryptocurrency sector. Trump has received considerable backing from crypto leaders, with many promising to expand the digital asset industry in the U.S.

In one of his most reported statements, Trump declared: "On day one, I will fire Gary Gensler."

While he cannot directly dismiss Gensler as a commissioner, he can appoint an interim SEC chair immediately upon his inauguration. Notably, Gensler's nomination by President Biden on February 3, 2021, was swiftly followed by his Senate confirmation on April 14.

Gensler has faced backlash from many in the crypto community for his strict regulatory stance, which some view as detrimental to the industry’s growth. The regulatory landscape under his leadership remains a contentious topic amidst calls for more clarity on what constitutes legal cryptocurrency practices.

Implications for the Crypto Market

The cryptocurrencies that the SEC has defined as unregistered securities are seeing fluctuating prices, as traders speculate on potential changes in regulatory leniency under Trump's administration. With Republicans regaining control of the Senate, Trump's prospective pick for SEC chair stands a fair chance of confirmation, resulting in a new leadership for the agency within months.

As the crypto sector watches closely, answers regarding Gensler’s potential exit remain uncertain, but the future regulatory environment is already shaping discussions and market movements.