Gary Gensler will resign as chairman of the U.S. Securities and Exchange Commission (SEC) on January 20, 2025, the same day President-elect Donald Trump takes office, a commission said statement.
Gensler began his tenure in April 2021 and said his time in the SEC was an “honor.” He added that the SEC is a “notable agency,” which states:
“The staff and the Commission are very mission-driven, focused on protecting investors, facilitating capital formation and ensuring markets work for both investors and issuers. The staff consists of real civil servants. It has been the honor of a lifetime to serve with them on behalf of everyday Americans and ensure our capital markets remain the best in the world.”
Of the 20 largest cryptocurrencies by market capitalization, XRP posted the biggest gains after the news and, at the time of writing, was up about 4% in the past 24 hours.
Gensler led enforcement actions against crypto companies, including major trading platforms, during his tenure. Under his leadership, the SEC sued prominent exchanges such as Binance, Coinbase and Kraken, accusing them of operating as unregistered stock brokers and clearinghouses.
Gensler also chaired the final approval of spot Bitcoin (BTC) and Ethereum (ETH) exchange-traded funds (ETFs) in the US. He had initially opposed the products, claiming they would promote manipulation in the crypto markets.
However, on August 29, 2023, the United States Court of Appeals for the District of Columbia Circuit ruled in Grayscale’s favor in its lawsuit over converting its Bitcoin Trust into a spot Bitcoin ETF.
The decision alleged that the SEC’s repeated argument about market manipulation without further explanation was “arbitrary and capricious” and violated federal administrative law.
As Gensler prepares to resign, newly elected President Donald Trump has yet to appoint a successor, leaving the commission evenly divided between Democrats and Republicans.
Among the names being considered for the spot are former Binance.US executive Brian Brooks, Robinhood’s chief legal officer Dan Gallagher, Paul Atkins, an ex-SEC commissioner who currently heads consultancy Patomak Global Partners, and SEC commissioner Hester Peirce.