SEC Chair Gary Gensler announces plans to step down in January
With Donald Trump preparing his return to the White House, it appears Securities and Exchange Chair Gary Gensler will be gone before President Trump can make good on his promise to fire him.
Chair Gensler announced that he will be stepping down from leading the SEC on January 20 — President Trump's inauguration day.
Roundtable anchor, Rob Nelson, had discussed the prospect of Gensler's resignation ahead of the announcement with Armando Pantoja, futurist and crypto investor; John Divine, digital asset OTC trader at BlockFills; and Robert Samuels, vice president of investor relations at Marathon Digital, to explore Gensler’s future and the regulatory landscape for digital assets.
Pantoja explained the complexities of Gensler’s position, highlighting the SEC's independence. "The SEC is segregated to ensure it's not influenced by other branches of government," he said, adding that while Trump can't directly fire Gensler without cause, he could apply pressure in various ways. "He can affect funding, hiring, and a lot of other things. If Gensler’s smart, he’ll resign before Trump takes office."
Nelson emphasized the possibility of Trump seeking Gensler’s removal for cause, citing potential negligence. "Trump could argue malfeasance, pointing to negligence in stifling industry growth and erratic decision-making," he said. "He could claim Gensler has withheld growth and messed up the industry." Now, he won't have to bother.
Divine provided data to back up these claims, suggesting the SEC's focus on digital asset enforcement may reflect poor resource allocation. "Gensler himself said five to seven percent of SEC resources are used to fight digital asset markets, despite their relative size," Divine noted. "It’s reminiscent of the early 1990s internet boom—stifling innovation then would have been seen as negligent in hindsight."
Samuels concluded by agreeing with the likelihood of Gensler stepping down. "There will be immense pressure on him to resign before Trump takes office,"