Gary Gensler, the chair of the Securities and Exchange Commission, will step down on January 20, the commission said Thursday, allowing President-elect Donald Trump to choose a replacement right away.
Since Gensler assumed control of the SEC in 2021, the agency has approached a number of regulatory matters, including cryptocurrency, in an ambitious but contentious manner. Although Trump has not yet revealed his choice to head the SEC, it is anticipated that the incoming chair would be more accommodating to Wall Street and cryptocurrency.
Theoretically, Gensler might have remained on until at least 2026 because SEC commissioners are appointed to five-year terms. Rather, as was largely anticipated, he is quitting the agency altogether.
“The Commission and its employees have a strong sense of mission, with a focus on safeguarding investors, promoting capital creation, and making sure that the markets benefit both issuers and investors. True public servants make up the personnel.
Serving with them on behalf of regular Americans and making sure that our capital markets continue to be the greatest in the world has been an honor of a lifetime, Gensler stated in a news statement.
The SEC worked to mandate additional disclosures from publicly listed firms and financial advisors for investors under Gensler. Additionally, the government shortened stock transaction settlement timeframes to one day, partly in response to the early 2021 meme-stock trading.
A court battle with Grayscale to prevent bitcoin ETFs is just one of the high-profile conflicts that Gensler’s SEC has had with the cryptocurrency sector. Since the new funds were established in January, billions of money have poured into them after Grayscale won the legal battle.
In recent years, the SEC has also filed lawsuits against a number of major digital asset firms, including Coinbase, for their handling or sale of cryptocurrency, with varying degrees of success.
Trump may have the chance to swiftly change the SEC. The mandates of two of the other four commissioners expire in 2024 or 2025, in addition to Gensler’s soon-to-be empty seat.
Commissioners may continue to serve for an additional 18 months after the conclusion of their term. Senate advice and approval are required for presidential appointees to the SEC.
