As speculation grows about SEC Chairman Gary Gensler’s future, many are wondering when he will step down and who might replace him. In an interview with Thinking Crypto, Digital Chamber’s Cody Carbone weighed in on the topic, suggesting that Gensler’s recent speech in New York may have been a subtle farewell speech. Carbone said many in the chamber shared that sentiment, with the tone suggesting Gensler may be preparing to leave the role.
It is customary for an SEC chairman to step down when a new administration from a different party takes office, usually around November or December. “I think his days are numbered,” he added. “I wouldn’t be surprised if he’s gone by the end of the day, if he’s gone by the end of the week, or if he’s gone before the end of the year. But I think that’s the timeline I’m looking at — December 31, I think he’s gone.”
Given the upcoming presidential inauguration, Carbone believes Gensler's days at the SEC are numbered. He speculates that Gensler could leave as early as this weekend, or as late as December 31.
“Traditionally, the SEC chairman would resign if a new administration of a different party came in at this time, November, December. And so I don’t think there’s any illusion that he’ll be there on Inauguration Day, that when Trump is sworn in, he’ll continue to serve at the SEC, or that he’d be interested in being demoted to commissioner,” he said.
If Gensler steps down, the SEC will likely have an acting seat. When the new administration takes office, the acting seat could be filled by a Republican commissioner. The timing of Gensler’s departure remains uncertain, but the expectation is that a leadership change at the SEC is imminent, with a new seat likely to take over in 2025.
Ripple vs. SEC
The SEC filed a lawsuit against Ripple Labs in December 2020, alleging that the company raised more than $1.3 billion through the sale of unregistered securities by selling XRP. Now, with the latest appeals, the process is expected to take several months and there will likely be significant legal wrangling leading up to a final decision. However, with the change in leadership, there may be some clarity.
