Gary Gensler, the chair of the U.S. Securities and Exchange Commission (SEC) and a staunch critic of the cryptocurrency industry, announced he will fully step down from the agency on January 20, the day Donald Trump is sworn in as president.
Genslerâs resignation includes vacating his position as commissioner, leaving the SEC without its head crypto critic.
In a statement, Gensler called the SEC âa remarkable agencyâ and praised its mission to protect investors and ensure robust capital markets. âIt has been the honor of a lifetime to serve alongside a staff of true public servants who work tirelessly on behalf of everyday Americans,â Gensler said, expressing gratitude to President Joe Biden and his colleagues on the commission.
Source: SEC
A Tenure Marked by Aggressive Crypto Regulation
Since taking office in April 2021, Gensler spearheaded a wave of enforcement actions and regulatory initiatives, many of which directly impacted the cryptocurrency industry. Under his leadership, the SEC extended its focus beyond crypto issuersâa key target during the tenure of his predecessor, Jay Clayton, who served under Trumpâto include exchanges and trading platforms. The SEC brought high-profile lawsuits against major players like Binance, Coinbase, Kraken, and Shapeshift, accusing them of operating as unregistered securities brokers and clearinghouses.
Gensler also presided over the SECâs long-awaited approval of spot Bitcoin and Ether exchange-traded funds (ETFs), a significant milestone after years of rejection. While initially opposing these products, a federal court ruling against the agency forced Gensler to align with the commissionâs Republican members to greenlight the ETFs.
Despite his focus on crypto enforcement, the SEC faced criticism from industry participants who had hoped for a more innovation-friendly approach. Gensler defended the agencyâs actions, pointing out that crypto-related complaints accounted for 18% of the SECâs caseload last year, even though crypto comprises less than 1% of the U.S. capital markets. âCourt after court has upheld the SECâs authority to protect investors, regardless of the form securities take,â Gensler emphasized in the SECâs press release.
Whatâs Next for the SEC and Crypto Regulation?
Genslerâs departure leaves the SEC at a pivotal juncture. With two commissioners from each party, the agency will be unable to enact major policy changes or enforcement actions until Trump nominatesâand the Senate confirmsâa successor, tipping the balance in favor of Republicans. Speculation about Trumpâs pick for SEC chair includes names like Teresa Goody GuillĂ©n, a former SEC attorney; Brian Brooks, who briefly led Binance.US; and other prominent figures in financial regulation.
Meanwhile, Trumpâs previous SEC chair, Jay Clayton, has been tapped as U.S. Attorney for the Southern District of New York, a key role in prosecuting corporate crimes.
The timing of Genslerâs announcement coincides with a significant legal setback for the SEC. A federal judge in the Fifth Circuit ruled that the agency exceeded its authority by attempting to broaden the definition of a âdealer,â a case brought by crypto lobbyists. This decision underscores the ongoing friction between regulators and the crypto industry and highlights the challenges the next SEC chair will inherit.
As Gensler exits the stage, his legacy is poised to remain a flashpoint in debates over crypto regulation, innovation, and investor protection.
Will Bitcoin hit 100K on the Day Gary Gensler Resigns?
Bitcoin is sitting at $98,200 and it looks increasingly likely that it will hit the $100,000 milestone on the day Gary Gensler resigned from the SEC. It would be a poetic ending. Watch this space.
