U.S. SEC Chair Gary Gensler To Step Down

Gary Gensler, the head of the U.S. Securities and Exchange Commission (SEC), has announced he will resign on January 20, the day of President-elect Donald Trump’s inauguration.

Gensler confirmed his departure on social media platform X, saying, “I thank President Biden for entrusting me with this incredible responsibility. The SEC has met our mission and enforced the law without fear or favor.”

Appointed in 2021, Gensler’s term was set to run until 2026. However, it is common for agency heads to step down with the arrival of a new administration. Trump had previously signaled plans to dismiss Gensler, citing the SEC’s aggressive enforcement actions against cryptocurrency firms during his tenure.

Under Gensler’s leadership, the SEC intensified its crackdown on the cryptocurrency industry, pursuing 46 enforcement actions in 2023 alone. Notable cases included legal actions against FTX founder Sam Bankman-Fried and Binance CEO Changpeng Zhao, both of whom were sentenced to jail. Gensler described the crypto sector as “rife with fraud and hucksters.”

In contrast, President-elect Trump has taken a more favorable stance toward cryptocurrencies, pledging at a July Bitcoin conference to make the U.S. “the crypto capital of the planet.” Trump’s victory has fueled optimism among crypto investors, with Bitcoin’s value hitting a record high of $98,000 shortly after the election.

Trump has also hinted at lighter regulations for the industry and has proposed appointing a presidential advisor focused exclusively on cryptocurrency.

The crypto community has expressed excitement over Gensler’s departure. Kristin Smith, CEO of the Blockchain Association, said, “All he did was come after the industry with litigation… so we are happy to get him out of the way.”

Crypto firms have also contributed significantly to Republican campaigns, donating $119 million to Congressional candidates they believe will support favorable legislation.

While crypto regulation dominated headlines, Gensler’s tenure also saw significant reforms in other areas. These included reducing the time it takes to settle stock trades and strengthening the resilience of large investment funds.

However, some initiatives, such as proposed climate risk disclosure rules, faced delays and legal challenges.

Gensler’s SEC also clashed with tech billionaire Elon Musk over potential fraud related to Musk’s acquisition of social media platform X. Musk has accused the SEC of harassment and has refused to cooperate with its investigations, further aligning himself with Trump’s agenda.