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 will 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.
Protecting investors, promoting capital formation, and making sure the markets benefit both issuers and investors are the top priorities for the Commission and its staff. True public servants make up the personnel. Serving alongside them on behalf of regular Americans and making sure that our capital markets continue to be the best 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 traded firms and financial advisors for investors under Gensler. Additionally, the SEC shortened stock trade settlement times to a single day, a move prompted in part by the early 2021 meme-stock trading.
The SEC has been involved in a number of high-profile conflicts with the cryptocurrency industry, such as a court battle with Grayscale to ban bitcoin exchange-traded funds (ETFs). Since the new funds were established in January, billions of dollars have poured into them after Grayscale won the legal battle. In recent years, the SEC has also filed lawsuits against a number of sizable 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 vacant 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.
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