Gary Gensler, Chair of the United States Securities and Exchange Commission (SEC), will step down from his role and leave the agency on January 20, 2025, as President-elect Donald Trump assumes office. Appointed in 2021, Gensler's tenure was marked by a stringent regulatory approach toward cryptocurrencies, initiating numerous enforcement actions against industry players.
Gensler cited the SEC’s approval of spot Bitcoin exchange-traded funds (ETFs) as an example of his collaborative efforts with the crypto industry but maintained that issuers must comply with regulatory frameworks. On Nov. 14, he reiterated the need for crypto tokens to register and provide transparent disclosures to the public.
President-elect Trump, who has pledged to make the U.S. “the crypto capital of the world,” has promised a leadership overhaul of regulatory agencies, including the SEC. Reports suggest that Trump may appoint Summer Mersinger, a pro-crypto commissioner at the Commodity Futures Trading Commission (CFTC), as the new CFTC Chair and potentially establish a White House role focused on cryptocurrency policy.
Gensler's departure follows the resignation of Gurbir Grewal, the SEC's chief enforcer, in October, known for his aggressive stance on cryptocurrency enforcement.
In a statement, Gensler reflected on his time at the SEC, saying:
“It has been an honour of a lifetime to serve with them on behalf of everyday Americans and ensure that our capital markets remain the best in the world.”
The leadership change signals a potential shift in U.S. crypto regulation under Trump’s administration, likely fostering a more industry-friendly environment. The prospect of new regulatory approaches may bolster investor confidence and drive innovation within the cryptocurrency sector.