U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler will step down on Jan. 20, 2025, paving the way for President-elect Donald Trump’s nominee. Gensler’s departure ends a tenure marked by the SEC’s hardline stance against cryptocurrency firms.
As SEC chairman since 2021, Gensler, who previously endorsed the blockchain Algorand, sued several crypto and blockchain firms. This approach aligned with the SEC’s “regulation by enforcement” strategy, which became its primary tool against crypto firms during his tenure.
Gensler’s five-year term as chairman was set to expire in 2026. In a statement, he announced his departure, potentially avoiding a contentious removal by Trump, who had threatened to fire him.
“The staff and the Commission are deeply mission-driven, focused on protecting investors, facilitating capital formation, and ensuring that the markets work for investors and issuers alike. The staff comprises true public servants. It has been an honor of a lifetime to serve with them on behalf of everyday Americans and ensure that our capital markets remain the best in the world,” said Gensler.
According to a CNBC report, Gary Gensler’s departure creates a vacancy, adding to the two commissioner slots set to become vacant in 2024 and 2025.
During Gensler’s leadership of the SEC, several blockchain and crypto firms, including Ripple, Consensys, and Opensea, faced lawsuits or Wells notices. In some cases, the SEC allegedly took this approach despite companies’ willingness to cooperate. Many in the U.S. blockchain and crypto industries criticized Gensler’s policy, which they say forces companies to seek refuge in more crypto-friendly countries.
However, Gensler’s stance also galvanized some crypto industry players to financially support Donald Trump and other pro-crypto candidates in the recent U.S. elections. Trump’s victory has already sparked a bitcoin rally which has seen the top crypto asset’s value rise by over 60% in less than three weeks. Trump has vowed to end the SEC’s alleged bias against crypto firms.
