Gary Gensler to Step Down as SEC Chairman in 2025
According to a recent statement from the US Securities and Exchange Commission (SEC), Gary Gensler will be stepping down from his role as Chairman on Jan. 20, 2025, coinciding with the inauguration of President-elect Donald Trump.
Gensler’s Tenure at the SEC
Having started his term in April 2021, Gensler expressed his gratitude for the opportunity to serve at the SEC, calling it an honor. He praised the agency’s commitment to protecting investors and ensuring the efficiency of capital markets.
“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.”
Impact on Crypto Markets
Following the news of Gensler’s impending departure, XRP, one of the top 20 cryptocurrencies by market cap, saw a significant increase of around 4% in value within 24 hours.
Enforcement Actions and Regulatory Approvals
During his tenure, Gensler led enforcement actions against several crypto firms, including major trading platforms like Binance, Coinbase, and Kraken. These actions targeted alleged violations of securities regulations.
Additionally, Gensler oversaw the approval of spot Bitcoin and Ethereum exchange-traded funds (ETFs) in the US, despite initial concerns about market manipulation. The approval came after a legal battle with Grayscale over the conversion of its Bitcoin Trust into an ETF.
Successor Considerations
With Gensler’s impending departure, President-elect Donald Trump has yet to nominate a successor, leaving the SEC evenly split between Democrats and Republicans. Some of the names being considered for the position include former Binance.US executive Brian Brooks, Robinhood’s chief legal officer Dan Gallagher, Paul Atkins, and SEC Commissioner Hester Peirce.
