The Chairman of the US Securities and Exchange Commission (SEC), Gary Gensler, has announced his intention to step down as head of the commission on January 20, 2025. This date also coincides with the inauguration of President-elect Donald Trump, an event that could bring significant changes to regulations.
However, the SEC, led by Gensler, has taken strong enforcement actions that affect a variety of sectors, specifically cryptocurrencies.
Gensler's tenure and focus on crypto
As head of the SEC since April 2021, Gary Gensler has conducted an aggressive and vigorous enforcement campaign. Some of his actions include instituting more than a hundred enforcement actions targeting cryptocurrency companies for securities registration violations, fraud, and money laundering. Notably, he has brought major legal actions against leading trading platforms including Coinbase, Binance, and Kraken.
Gensler also played a role in approving Bitcoin spot exchange-traded funds (ETFs), a move that came after years of SEC opposition. A court order forced the agency to license such products, leading to a surge in institutional investors. But skeptics say his stance has stifled innovation and forced crypto-related companies to operate overseas.
Contribute more broadly to the US capital markets
In addition to cryptocurrencies, Gensler has proposed major changes to improve U.S. financial markets. These include reducing the settlement time for securities transactions to one day, updating capital markets rules, and improving disclosure on corporate governance, cybersecurity, and climate risks.
He made significant progress in this position, notably strengthening the Public Company Accounting Oversight Board (PCAOB). During his tenure, agreements were made with Chinese authorities to supervise auditing firms associated with Chinese companies listed in the United States. This further strengthened investor confidence in cross-border financial business.
What lies ahead for the SEC?
Gensler’s resignation raises concerns about the direction of the SEC in the Trump administration. Possible successors include Teresa Goody Guillén, who practiced law at the SEC and is a cryptocurrency advocate, and Brian Brooks, who served as the U.S. Comptroller of the Currency and former CEO of Binance in the United States.
Without an appointed and confirmed SEC chairman, Democrats and Republicans would have an equal number of commissioners on the commission. However, this could slow major policy and enforcement changes. The new leadership would likely take a more positive stance on cryptocurrencies, in line with most Republicans’ beliefs about innovation and market progress.
