Investing.com – Former President Donald Trump, who continues to portray himself as a pro-crypto candidate, has taken aim at U.S. Securities and Exchange Commission Chairman Gary Gensler, calling him the biggest villain in the industry.

However, US investment bank TD Cowen speculates that Gensler may remain as commissioner, potentially delaying the expected easing of regulations for the cryptocurrency sector until the end of 2026.

Trump promised to fire what he called the U.S. blockchain industry’s No. 1 enemy before an enthusiastic crowd at the year’s biggest conference. But there is no precedent for a president directly removing the SEC chairman.

Typically, SEC chairs step down when there is a change in the White House, allowing the fresh administration to appoint fresh leadership.

“The Senate confirms SEC commissioners to five-year terms, which are staggered so that one term expires each June,” noted TD Cowen. “No more than three of the five commissioners may be from the same party as the president.”

With Democrats currently holding a 3-2 majority and Gensler serving as chair, the firm points out that Commissioner Caroline Crenshaw’s term expired in June, but President Biden has nominated her for a second term. The nomination is expected to give Democrats a majority after 2024.

If Trump wins, he won’t be able to nominate a fresh SEC commissioner until June 2025, when Republican Hester Peirce’s term expires. Even then, TD Cowen notes, “This pick won’t give the GOP a majority because Peirce is a Republican.”

“Trump could get majority sooner if Gensler resigns, but there’s nothing forcing him to go.”

Rep. Cowen suggested there was a possibility that Gensler would remain as commissioner to prevent the Republican Party from gaining a majority.

“Democrats forced out the GOP FDIC chairman after the last election,” TD Cowen analysts wrote in a note Tuesday. “We expect progressives to pressure Gensler to preserve Democratic policy victories by depriving the GOP of its SEC majority for at least 18 to 24 months.”

If Gensler stays, the report suggests, cryptocurrency policy could be put on hold. While enforcement actions could be eased, passing regulatory changes or resolving existing lawsuits could become hard with the Democratic majority still in place. TD Cowen further speculates that Trump could try to fire Gensler, but “commissioner protections are unclear and we believe the matter will be decided in court.”

TD Cowen concludes, “It is hard to see the point of having bipartisan commissions if presidents can fire members of the opposing party for any reason.”