Gary Gensler will step down from his role as the US Securities and Exchange Commission (SEC) Chairman on Jan. 20, 2025, the same day as President-elect Donald Trump takes office, according to a 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:
“The staff and the Commission are deeply mission-driven, focused on protecting investors, facilitating capital formation, and ensuring that the markets work for investors and issuers alike. The staff comprises true public servants. It has been an honor of a lifetime to serve with them on behalf of everyday Americans and ensure that our capital markets remain the best in the world.”
Among the 20 largest crypto by market cap, XRP registered the most significant gains following the news and was up roughly 4% over the past 24 hours as of press time.
Gensler spearheaded enforcement actions against crypto firms, including major trading platforms, during his tenure. Under his leadership, the SEC sued prominent exchanges like Binance, Coinbase, and Kraken, accusing them of operating as unregistered securities brokers and clearinghouses.
Gensler also presided over the final approval of spot Bitcoin (BTC) and Ethereum (ETH) exchange-traded funds (ETFs) in the US. He had initially opposed the products, claiming they would boost manipulation in crypto markets.
However, on Aug. 29, 2023, the US Court of Appeals for the District of Columbia Circuit ruled in favor of Grayscale in its lawsuit over converting its Bitcoin Trust into a spot Bitcoin ETF.
The decision claimed that the SEC’s repeated argument of market manipulation without further explanations was “arbitrary and capricious” and violated federal administrative law.
As Gensler prepares to step down, President-elect Donald Trump has yet to nominate a successor, leaving the commission evenly split between Democrats and Republicans.
Among the names considered for the spot are former Binance.US executive Brian Brooks, Robinhood’s chief legal officer Dan Gallagher, Paul Atkins, an ex-SEC commissioner currently heading consulting firm Patomak Global Partners, and SEC’s Commissioner Hester Peirce.