Gary Gensler will leave the SEC on January 20, 2025, coinciding with the inauguration of President-elect Donald Trump.
The U.S. Securities and Exchange Commission (SEC) has officially confirmed that Chairman Gary Gensler will leave office on January 20, 2025, coinciding with President-elect Donald Trump's inauguration. This decision marks the end of a challenging term for Mr. Gensler, shaped by over 100 lawsuits targeting companies operating in the cryptocurrency sector.
Mr. Gensler's departure comes amid President-elect Trump's repeated expressions of positive views towards cryptocurrency, while also committing to create a more favorable legal environment for the industry. Earlier, in July 2024, Trump declared that he would fire Gary Gensler, a move seen as an attempt to garner support from the cryptocurrency community. Although the president does not have the direct authority to dismiss an SEC commissioner, Gensler's resignation clearly reflects a significant transfer of power at the agency.
During his tenure, since taking office in 2021, Mr. Gensler has been steadfast in his strict regulatory policy towards the cryptocurrency market. He considers the majority of the more than 10,000 tokens currently available to be securities, requiring issuing organizations to comply with registration regulations. Although the SEC under his leadership has approved spot Bitcoin ETF funds, his tough approach to cryptocurrency companies has often been criticized as stifling innovation and hindering the industry's growth.
In contrast, Trump has publicly outlined a vision of making the U.S. a global cryptocurrency hub. Some sources indicate he is considering appointing Ms. Summer Mersinger, a commissioner of the Commodity Futures Trading Commission (CFTC) with a pro-cryptocurrency stance, to lead the SEC. At the same time, the plan to establish a dedicated cryptocurrency policy position at the White House also exemplifies Trump's strong commitment to promoting the development of this industry.
Mr. Gensler's decision came after Mr. Gurbir Grewal, Director of SEC's Enforcement Division, announced his resignation on October 11. Grewal is also known for his tough stance on violations in the cryptocurrency sector.