Gary Gensler, the chairman of the US Securities and Exchange Commission (SEC), has announced that he will step down from his position on January 20, the day of President-elect Donald Trump’s inauguration.
Mr. Gensler confirmed his resignation on social media platform X following the SEC’s announcement.
Gensler said:
“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,” .
A Controversial Tenure
Appointed as SEC chair in 2021, Mr. Gensler’s term was set to run until 2026, but it is customary for agency heads to step down at the start of a new administration.
His tenure has been marked by significant enforcement actions, particularly in the cryptocurrency industry, which sparked tensions with the incoming president.
President-elect Trump has been openly critical of Mr. Gensler’s regulatory approach.
Trump’s campaign promised to dismiss Gensler on “day one” and to adopt a lighter regulatory stance on cryptocurrencies.
Investors have reacted positively to Trump’s win, with Bitcoin reaching a record high value of $98,000 (£77,955) on Thursday.
Need Career Advice? Get employment skills advice at all levels of your career
Crypto Industry Clash
Under Gensler’s leadership, the SEC initiated a record 46 enforcement actions against cryptocurrency firms in 2023, targeting companies like FTX and Binance.
These efforts led to the convictions of prominent industry figures, including FTX’s Sam Bankman-Fried and Binance’s Changpeng Zhao.
Gensler described the crypto sector as an industry “rife with fraud and hucksters and grifters.”
In contrast, Trump has embraced the cryptocurrency sector. The President-elect has pledged to make the US “the crypto capital of the planet.” He launched his family’s cryptocurrency venture, World Liberty Financial, during his campaign.
Kristin Smith, CEO of the Blockchain Association, expressed optimism about Gensler’s departure, stating:
“All he did was come after the industry with litigation… so we are happy to get him out of the way.”
Looking for a job? Visit whatjobs.com today
Broader SEC Agenda
While cryptocurrency regulation dominated headlines, Gensler also spearheaded significant reforms in other areas:
- Financial Market Resilience: Gensler introduced measures to strengthen the resilience of large investment funds to economic shocks.
- Faster Trade Settlements: He reduced the time required to settle share transactions, ensuring quicker transfers of funds.
- Climate Risk Disclosures: Efforts to enhance corporate disclosure of climate risks faced delays as legal challenges moved through the courts.
SEC and Elon Musk
The SEC under Gensler also clashed with tech billionaire Elon Musk, a strong Trump ally.
The agency investigated Musk for alleged fraud related to his 2022 purchase of X. Musk has accused the SEC of harassment and refused further cooperation with the inquiry.
Hiring? Post jobs for free with WhatJobs
Future of SEC Under Trump
With Gensler’s departure, significant changes are expected in the SEC’s approach.
Trump’s administration is anticipated to reduce resources for policing the cryptocurrency industry and may appoint a presidential advisor dedicated to the sector.
These developments align with Trump’s broader deregulatory agenda, which is likely to reshape the SEC’s priorities.
Gary Gensler’s tenure as SEC chairman leaves a legacy of robust enforcement and ambitious reforms, though his approach has drawn both praise and criticism.
His resignation marks the beginning of a new chapter for the SEC under the incoming administration.
