Gary Gensler, the Chair of the U.S. Securities and Exchange Commission, has announced that he will be leaving the agency completely on the day that Donald Trump becomes the president in January. This means that he will not only be stepping down as the head of the main U.S. securities regulator, but he will also not continue as a commissioner. This decision implies that he will not be present to defend his regulatory policies, which have been quite stringent towards the cryptocurrency industry.
Gensler’s resignation will take effect at noon on Jan. 20, the same time when President-elect Trump is sworn in, according to a press release from the SEC. In a statement, Gensler praised the agency as a remarkable one and highlighted the dedication of the staff and the Commission to protecting investors, facilitating capital formation, and ensuring that the markets function well for both investors and issuers. He expressed his gratitude towards President Joe Biden and his fellow commissioners for the opportunity to serve with them on behalf of everyday Americans.
During his term, which began in April 2021, Gensler oversaw several enforcement actions and rulemakings that directly impacted the crypto industry. Despite hopes from industry participants for a more lenient approach to crypto, Gensler’s SEC expanded its enforcement actions to target not only crypto issuers but also crypto trading platforms. The SEC filed lawsuits against major exchanges like Binance, Binance.US, Coinbase, Kraken, Shapeshift, and others, alleging that they were operating as unregistered securities brokers and clearinghouses.
Moreover, Gensler also played a role in approving the first spot bitcoin and ether exchange-traded products after years of attempts by crypto companies. He initially opposed these products but eventually voted alongside two Republican commissioners to approve the ETFs following a court ruling against the agency. As Trump has not yet named a nominee to succeed Gensler as SEC chair, the commission will operate with two members from each party until the appointment is confirmed by the Senate.
In the wake of Gensler’s departure, the SEC’s approach to crypto regulation and enforcement may undergo changes depending on the future appointee. However, the agency’s commitment to protecting investors and ensuring compliance with securities laws is expected to remain a top priority. The cryptocurrency industry will be closely watching for any developments regarding Gensler’s successor and the overall direction of SEC policies under the new administration.
