Patrick Daugherty on Potential Gensler Exit, SEC Crypto Approach – ‘It will either be a little friendlier or a lot’

Foley & Lardner LLP partner Patrick Daugherty assessed President Joe Biden’s withdrawal from the 2024 presidential race, its potential impact on the U.S. Securities and Exchange Commission’s (SEC) approach to cryptocurrency, and the chances it increases the likelihood of an early exit for SEC Chair Gary Gensler in the Thomson Reuters Regulatory Intelligence article, “Biden’s exit from race may influence SEC actions on crypto more than recent court rulings.”

Daugherty, commenting on the SEC’s authority over the crypto industry, noted recent Supreme Court rulings in Jarkesy and Loper Bright have weakened the SEC’s power.

“These opinions bespeak a very high degree of skepticism about administrative power in the United States, said Daugherty, who leads Foley’s Digital Assets, Web3 & NFT Practice within the firm’s Innovative Technology Sector. “We’re probably at a high point of that in Supreme Court history, in my view.”

Daugherty said that whoever replaces Chair Gensler, it will likely be a net positive for the industry. “Because you could hardly be more negative than Chair Gensler, it is almost inevitable,” he added. “It will either be a little friendlier or a lot friendlier.”