Gary Gensler will step down as Chairman of the United States Securities and Exchange Commission (SEC) on January 20, 2025, the same day President-elect Donald Trump takes office, according to a statement from the Commission. statement.
Gensler began his tenure in the role in April 2021 and said his time at the SEC has been an “honor.” He added that the SEC is a “remarkable agency,” stating:
“Staff and the Commission are deeply committed to protecting investors, facilitating capital formation, and ensuring that markets work well for investors and issuers alike. The staff is made up of real civil servants. It has been the honor of my life to serve with them on behalf of everyday Americans and ensure our capital markets remain the best in the world.
Among the 20 largest cryptocurrencies by market capitalization, XRP saw the largest gains following the news and is up approximately 4% in the past 24 hours at press time.
Gensler led enforcement actions against crypto companies, including major trading platforms, during his tenure. Under his leadership, the SEC has sued prominent exchanges like Binance, Coinbase, and Kraken, accusing them of operating as unregistered securities broker-dealers and clearinghouses.
Gensler also presided over the final approval of Bitcoin (BTC) and Ethereum (ETH) spot exchange-traded funds (ETFs) in the United States. He initially opposed the products, saying they would spur manipulation in crypto markets.
However, on August 29, 2023, The United States Court of Appeals for the District of Columbia Circuit has ruled in favor of Grayscale in its lawsuit regarding the conversion of its Bitcoin Trust into a spot Bitcoin ETF.
The ruling affirmed that the SEC’s repeated argument that market manipulation, without further explanation, was “arbitrary and capricious” and violated federal administrative law.
As Gensler prepares to resign, President-elect Donald Trump has yet to name a successor, leaving the commission evenly divided between Democrats and Republicans.
Names being considered for the position include former Binance.US executive Brian Brooks, Robinhood chief legal officer Dan Gallagher, Paul Atkins, a former SEC commissioner who currently runs consulting firm Patomak Global Partners, and Commissioner of SEC Hester Peirce.
