Will Teresa, who may take charge of the SEC, become a crypto-friendly sword-wielder?

Written by: Web3 Farmer Frank

On November 21, a piece of news froze on the official website of the U.S. SEC, and the crypto world cheered.

Gary Gensler may not have anticipated that he would rise and fall with crypto. Even though it would be normal for him to leave after 26 years, he still decided to step down on the day Biden resigned and Trump was inaugurated.

The merits and demerits of Gary Gensler's tenure will be judged by future generations. However, the reasons for his early departure, aside from pressure from Congress and institutions, cannot overlook the fact that "crypto president" Trump had threatened to dismiss Gensler upon taking office and appoint the crypto-friendly blockchain legal expert Teresa Goody Guillén as the chair of the U.S. SEC.

So who is Teresa Goody Guillén? Why has she won Trump's favor? If she takes the helm of the U.S. SEC, what different variables might she bring to the crypto industry?

The Major Shift in Crypto Regulation at the U.S. SEC During the "Trump Era"

Since April 17, 2021, the U.S. SEC under Gary Gensler has become synonymous with a "big stick" in the crypto industry, almost encompassing all major enforcement actions in recent years:

Whether it was the large-scale lawsuits against crypto exchanges Binance and Coinbase, or the firm stance of classifying most crypto assets as securities, in just three and a half years, the U.S. SEC has completed over 2,700 enforcement actions and collected more than $21 billion in fines in the crypto industry.

As a former MIT professor who taught blockchain technology courses, Gary Gensler's iron-fisted regulatory policies have stirred up storm after storm in the crypto market, causing the high hopes that the crypto industry had for him at the beginning of his tenure to dissipate. Evaluations quickly polarized, making him the most controversial figure in the crypto industry.

In the 2024 U.S. presidential election, Trump has become a beacon of hope for the crypto industry. Trump has repeatedly criticized Gary Gensler's crypto regulatory policies, even stating in public speeches that if he is successfully elected president, he will remove Gary Gensler from his position on his first day in office.

In Trump's reform plan, finding an SEC chair who understands both traditional finance and the crypto industry is of utmost importance. For this reason, Teresa Goody Guillén, with her unique cross-disciplinary background and industry support, has gradually become a potential hot candidate for the new SEC chair: this seasoned securities law expert not only has extensive experience in traditional finance but also maintains close cooperation with blockchain companies, possessing a deep understanding of the operational logic of the crypto industry.

Who is Teresa Goody Guillén, the "Potential Successor" to the U.S. SEC?

According to public information, Teresa Goody Guillén is currently a partner and co-head of the blockchain team at BakerHostetler law firm. She joined in January 2019 and leads a team handling legal matters related to blockchain technology and digital assets, accumulating rich practical experience in areas such as blockchain technology, digital assets (including NFTs), DAOs, and DeFi.

Additionally, Teresa Goody Guillén has served as a litigation attorney in the Office of the General Counsel at the U.S. SEC and held senior positions at Kalorama Partners, focusing on corporate compliance, risk management, and legal strategic consulting, as well as at The Goody Group LLC and Goody Counsel PLLC.

• 2009 - 2011: Served as a litigation attorney in the Office of the General Counsel at the U.S. SEC, handling complex securities litigation and enforcement-related matters;
• 2011 - 2015: Joined Kalorama Partners, founded by former U.S. SEC Chair Harvey Pitt, as Chief Operating Officer and Managing Director, providing consulting services for clients on SEC enforcement cases in collaboration with Harvey Pitt;
• 2015 - 2019: Co-founded The Goody Group LLC & Goody Counsel PLLC and served as CEO;

This showcases Teresa's unique cross-professional background: her experience at the SEC provides her with a solid foundation in traditional securities law, while her deep involvement in the blockchain field makes her a rare professional at the intersection of law and technology. Coupled with her academic teaching experience, it further enhances her authority in this area.

Notably, BakerHostetler has taken on several important blockchain-related cases in recent years and provided legal consulting services to various Web3 projects. The team led by Teresa is particularly adept at helping startups navigate complex regulatory challenges, such as developing compliance strategies, responding to regulatory investigations, and defending clients in litigation.

It is understood that the team under Teresa has collaborated with well-known blockchain projects like the decentralized "AI Data Chain" Masa, assisting in promoting the application of Web3 innovative technologies within a legal framework.

Teresa's public stance on the crypto industry has always been seen as "friendly." She has pointed out on multiple occasions that the U.S. should adopt a more open attitude when formulating crypto regulations and provide a supportive framework for technological innovation, rather than employing a hardline strategy of "regulation by enforcement." This viewpoint has earned her widespread support from the Web3 community.

Will the U.S. SEC Enter an "All-Out Embrace of Crypto" Era?

From the current signs, Teresa becoming a hot candidate for the U.S. SEC chair is not only due to her personal resume aligning with the comprehensive needs of a "Trump Era" SEC chair but also reflects the market's strong expectation for a "policy shift" in crypto regulation:

In the eyes of the industry, she is an ideal candidate who can deeply understand traditional financial rules while providing support for Web3 innovation. If she ultimately succeeds Gary Gensler, it could lead the U.S. SEC down a completely different path, injecting new vitality into the U.S. crypto industry.

It is important to note that one of the biggest obstacles currently facing the U.S. crypto industry is regulatory uncertainty. The "Financial Innovation and Technology Act of the 21st Century" (FIT21 Act), which passed the House with an overwhelming majority of 279 votes to 136 on May 22, is key in delineating regulatory authority, clearly defining that there are two agencies responsible for regulating crypto assets: the U.S. Commodity Futures Trading Commission (CFTC) and the U.S. SEC.

Teresa has publicly expressed her desire to establish a new classification system for digital assets, allowing crypto assets to no longer be entirely subject to the traditional Howey test, arguing that the Howey test should not determine the future of the industry or technology. If this idea comes to fruition, it will undoubtedly provide the industry with a set of executable and clear rules, significantly reducing uncertainty and attracting more institutional capital into the crypto space, driving the institutionalization wave of crypto assets.

Brendan Playford, co-founder of Masa, commented: "Teresa is the change agent the U.S. SEC desperately needs. She focuses on light-touch regulation, believes that the Howey test should not determine the future of the industry or technology, and will end the current situation of 'regulation by enforcement,' uniting all key participants from Wall Street and the crypto industry to collaboratively establish clear market structures, allowing the crypto industry to thrive in the U.S. As a lawyer challenging current SEC policies in Washington, D.C., and defending the rights of crypto innovators, her qualifications far exceed what is required—'Let the SEC be 'Goody' again!'"

Conclusion

If Teresa Goody Guillén is appointed, it will undoubtedly mark an unprecedented policy shift for the U.S. SEC, likely allowing it to break free from the current predicament of regulation by enforcement and reshape the competitiveness of the U.S. crypto industry through light-touch regulation and clear market rules.

Especially as a legal expert well-versed in traditional financial rules and proficient in blockchain technology, her good collaborative experiences with blockchain projects like Masa also imply that the future crypto industry could establish more direct and pragmatic communication channels with the U.S. SEC through her. As a "bridge between technology and regulation," Teresa can more acutely capture industry needs and design a regulatory framework that balances innovation and compliance for the crypto market.

However, amid expectations, challenges also arise—can Teresa balance the interests of traditional financial institutions with those of the emerging crypto industry? How will she protect investor interests and maintain market stability during the transformation?

The answers to these questions may be revealed after her appointment.