SEC Chair Gary Gensler Steps Down Early Amid Potential Trump Administration Shake-Up

Gary Gensler, Chairman of the United States Securities and Exchange Commission, will step down on January 20, 2025.

Gensler Exits Before Trump Takes Office

Gary Gensler, chairman of the United States Securities and Exchange Commission (SEC), will stand down on January 20, 2025, making room for President-elect Donald Trump's choice. Gensler's resignation concludes a career highlighted by the SEC's harsh stance toward Bitcoin businesses.

Gensler, the SEC chairman since 2021, has sued multiple crypto and blockchain startups after previously endorsing the blockchain Algorand. This approach was consistent with the SEC's "regulation by enforcement" strategy, which became the principal tactic used against cryptocurrency firms during his tenure.

Gensler's five-year term as chairman was due to expire in 2026. In a statement, he announced his resignation, potentially averting a difficult removal by Trump, who had threatened to remove him.

"The staff and the Commission are deeply mission-driven, focusing on protecting investors, facilitating capital formation, and ensuring that markets benefit investors and issuers." The staff consists of actual public servants. It has been an honor of a lifetime to work with them on behalf of ordinary Americans and to ensure that our capital markets remain the best in the world," said Gensler.

According to CNBC, Gary Gensler's resignation leaves a vacancy, adding to the two commissioner spots that will become available in 2024 and 2025.

Several blockchain and crypto firms, including Ripple, Consensys, and Opensea, were sued or served with Wells notices when Gensler was chairman of the SEC. In several situations, the SEC followed this strategy despite companies' desire to comply. Many in the US blockchain and crypto industries have attacked Gensler's strategy, which they claim drives enterprises to seek sanctuary in more crypto-friendly countries.

However, Gensler's attitude prompted several cryptocurrency sector players to support Donald Trump and other pro-crypto politicians financially in the 2017 US elections. Trump's triumph has already prompted a bitcoin surge, with the leading cryptocurrency's value increasing by more than 60% in less than three weeks. Trump has committed to address the SEC's perceived bias against cryptocurrency companies.