The SEC may welcome new leadership, and the encryption industry is looking forward to a policy shift.

On November 21, an important message was released on the official website of the United States SEC ( SEC ), attracting widespread attention from the cryptocurrency industry. Current SEC Chairman Gary Gensler may leave office early, rather than serving his usual term until 2026. This decision appears to be related to the upcoming political changes.

During Gensler's tenure, the SEC has taken a tough stance on the encryption industry, involving almost all major enforcement actions. In just three and a half years, the SEC has conducted over 2,700 enforcement actions in the encryption field, with total fines exceeding $21 billion. This harsh regulatory approach has sparked numerous controversies within the industry.

As the 2024 U.S. presidential election approaches, the cryptocurrency industry is beginning to place its hopes on new political leadership. There are rumors that if elected president, a certain candidate plans to replace Gensler on their first day in office. When searching for a new SEC chairman, professionals who understand both traditional finance and the cryptocurrency industry have become the top choice.

In this context, Teresa Goody Guillén has gradually become one of the leading candidates for the chair of the SEC. As a partner and co-head of the blockchain team at BakerHostetler, Teresa has extensive experience in both traditional finance and encryption. She previously worked as a litigation attorney in the Office of the General Counsel at the SEC, giving her a deep understanding of securities law. Additionally, she has accumulated rich practical experience in emerging fields such as blockchain technology, digital assets, decentralized autonomous organizations (DAO), and decentralized finance (DeFi).

Teresa's unique background makes her an ideal candidate to bridge traditional finance and emerging technologies. She advocates for a more open approach in formulating encryption regulations, providing a supportive framework for technological innovation rather than adopting a hardline strategy. This perspective has garnered widespread support from the Web3 community.

If Teresa ultimately becomes the new chair of the SEC, it may bring a whole new regulatory direction for the U.S. encryption industry. She has repeatedly expressed a desire to establish a new classification system for digital assets, no longer relying solely on the traditional Howey test to determine the nature of encryption assets. This approach is expected to provide clearer, enforceable rules for the industry, reduce uncertainty, and attract more institutional capital into the encryption field.

A co-founder of a certain blockchain project commented that Teresa is the change agent that the SEC urgently needs. She tends to adopt a "light-touch regulation" approach and believes that the Howey test should not determine the future of the entire industry or technology. She may put an end to the current practice of "enforcement instead of regulation" and unite various participants from Wall Street and the encryption industry to jointly establish a clear market structure to promote the healthy development of the encryption industry in the United States.

However, challenges still exist. If Teresa takes office, she will face a series of difficulties in balancing the interests of traditional financial institutions with those of the emerging encryption industry, as well as how to promote change while protecting investors' rights and maintaining market stability. The answers to these questions may only be gradually revealed after she officially takes office.

In any case, the crypto industry generally hopes that the SEC can usher in a policy shift, reshaping the competitiveness of the United States in the global crypto innovation sector through a clearer and more inclusive regulatory framework. As a legal expert well-versed in traditional financial rules and proficient in blockchain technology, Teresa is expected to become a strong bridge between regulatory agencies and the innovation industry, contributing significantly to the healthy development of the crypto market.