The SEC may welcome a "friendly Crypto enforcer"

On November 21, the crypto world was elated due to a news release on a regulatory agency's official website.

The current chairman may not have anticipated that his career would be so closely tied to cryptocurrency. Although his term was originally supposed to last for 26 years, he chose to resign early during the presidential transition.

The merits and faults of the current chairman during his term will be evaluated by future generations. However, his early departure is not only due to pressure from congressional members and institutions but is also closely related to the statement of a certain presidential candidate. This candidate publicly stated that if elected, they would replace the current chairman and appoint a crypto-friendly blockchain legal expert, Teresa Goody Guillén, as the new chairman.

So, who exactly is Teresa Goody Guillén? Why has she garnered the favor of presidential candidates? If she truly takes charge of the U.S. SEC, what changes will she bring to the crypto industry?

Major Turnaround in SEC's Cryptocurrency Regulation Possible

Since April 17, 2021, the U.S. SEC under the current chair has played the role of a strict enforcer in the cryptocurrency industry, having participated in almost all major cryptocurrency enforcement actions in recent years. Whether it is the large-scale lawsuits filed against major cryptocurrency exchanges or the tough stance on classifying most cryptocurrency assets as securities, the U.S. SEC has completed over 2,700 enforcement actions in the cryptocurrency industry in just three and a half years, with total fines exceeding $21 billion.

As a former professor who taught blockchain technology courses at a prestigious university, the iron-fisted regulatory policies of the current chairman have stirred up one storm after another in the crypto market, causing the hopes that the crypto industry had for his initial tenure to dissipate, making him one of the most controversial figures in the field of cryptocurrency.

In the 2024 U.S. presidential election, a certain candidate has become the new hope for the cryptocurrency industry. This candidate has repeatedly criticized the current chairman's cryptocurrency regulatory policies and even publicly stated that if elected president, they would replace the current chairman on their first day in office.

In the reform proposal of this candidate, finding an SEC chairman who understands both traditional finance and the crypto industry is a top priority. For this reason, Teresa Goody Guillén, with her unique cross-border background and industry support, has gradually become a potential frontrunner for the new SEC chairman: this seasoned securities law expert not only has extensive experience in traditional finance but also maintains close collaborative relationships with blockchain companies, possessing an in-depth understanding of the operational logic of the crypto industry.

Teresa Goody Guillén: The Unique Background of a Cross-Industry Expert

According to public information, Teresa Goody Guillén is currently a partner and co-head of the blockchain team at a well-known law firm. She joined the firm in January 2019 and leads the team in 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.

Teresa's career showcases a unique cross-background:

• From 2009 to 2011, served as a litigation attorney in the Office of the General Counsel at the U.S. Securities and Exchange Commission, responsible for handling complex securities litigation and enforcement-related matters.
• From 2011 to 2015, held a senior position at a consulting firm founded by a former SEC chairman, providing advisory services for SEC enforcement cases to clients.
• From 2015 to 2019, participated in the creation and led my own legal consulting company.

This experience has given Teresa a unique advantage: her work experience at the SEC has laid a solid foundation in traditional securities law, while her deep involvement in the blockchain field has made her a rare expert at the intersection of law and technology. Coupled with her teaching experience in academia, it further enhances her authority in this emerging field.

It is worth noting that the law firm where Teresa works has taken on several important blockchain-related cases in recent years and has provided legal consulting services for multiple Web3 projects. The team led by Teresa is particularly skilled at helping startups navigate complex regulatory challenges, including developing compliance strategies, responding to regulatory investigations, and defending clients in litigation.

According to reports, the team led by Teresa has collaborated with several well-known blockchain projects to assist in promoting the application of Web3 innovative technologies within a legal framework.

For a long time, Teresa's public attitude towards the cryptocurrency industry has been regarded as synonymous with "friendliness." She has repeatedly stated that the U.S. should adopt a more open approach when formulating cryptocurrency regulations, providing a supportive framework for technological innovation rather than employing a hardline strategy of "lawsuits instead of legislation." This perspective has also earned her widespread support from the Web3 community.

The US SEC May Enter a "Full Embrace of Crypto" New Era

From the various signs at present, Teresa has become a leading candidate for the chair of the U.S. SEC, not only because her personal resume best meets the comprehensive needs of the new era SEC chair, but also reflects the market's strong expectations for a "policy shift" in crypto regulation.

In the eyes of the industry, she is the ideal candidate who can deeply understand traditional financial regulations and provide support for Web3 innovations. If she ultimately succeeds the current chairman, it could lead the SEC down a new path and inject new vitality into the U.S. crypto industry.

One of the biggest obstacles currently facing the U.S. cryptocurrency industry is regulatory uncertainty. On May 22 of this year, the U.S. House of Representatives passed the Financial Innovation and Technology for the 21st Century Act (FIT21) with overwhelming support, clearly delineating regulatory authority and stipulating that there are two agencies responsible for regulating crypto assets: the Commodity Futures Trading Commission (CFTC) and the SEC.

Teresa has repeatedly expressed her hope to establish a new classification system for digital assets, so that crypto assets are no longer completely subject to the traditional Howey test. She believes that the Howey test should not determine the future of the industry or technology. If this idea is implemented, it will provide the industry with a set of executable and clear rules, greatly reducing uncertainty, attracting more institutional capital into the crypto space, and promoting the institutionalization wave of crypto assets.

The co-founder of a certain blockchain project commented: "Teresa is the transformative force that the SEC urgently needs. She focuses on light-touch regulation and believes that the Howey test should not determine the future of the industry or technology, and will put an end to the status quo of 'enforcement replacing regulation.' She will unite all key players from Wall Street and the crypto industry to collaboratively establish a clear market structure that allows the crypto industry to thrive in the U.S. As a lawyer challenging the current SEC policies in Washington, D.C., and defending the rights of crypto innovators, her qualifications far exceed what is required."

Conclusion

If Teresa Goody Guillén is ultimately appointed, it will undoubtedly mark an unprecedented policy shift for the U.S. SEC. This is expected to help the U.S. SEC break free from the current predicament of relying on litigation instead of legislation, reshaping the competitiveness of the U.S. crypto industry through light-touch regulation and clear market rules.

As a legal expert well-versed in traditional financial regulations and proficient in blockchain technology, Teresa's extensive collaboration with various blockchain projects indicates that the future of the cryptocurrency industry may benefit from more direct and pragmatic communication channels with the SEC through her. In her role as a "bridge between technology and regulation," Teresa is expected to more keenly capture industry demands and design a regulatory framework for the crypto market that balances innovation and compliance.

However, there are also challenges under the expectations—can Teresa balance the interests of traditional financial institutions and the emerging cryptocurrency industry? How can investor interests be protected and market stability maintained during the transformation? The answers to these questions may gradually be revealed after her appointment.