Gary Gensler to Step Down as SEC Chair on January 20, 2025, Aligning His Resignation with President-elect Donald Trump's Inauguration

While it is customary for federal agency leaders to leave during a change in administration, Gensler's decision has sparked speculation about his motives.

SEC Chair Gary Gensler will resign on January 20, 2025, aligning his departure with President-elect Donald Trump’s inauguration. While it is typical for federal agency leaders to leave during a change in administration, Gensler’s decision has sparked speculation about his motives.

Trump had openly criticized Gensler’s strict regulatory approach, particularly toward cryptocurrencies, and pledged to remove him if elected. By resigning, Gensler may be seeking to preserve his legacy, avoiding a public dismissal while ensuring a smoother transition.

Gensler’s tenure began in April 2021 and was defined by aggressive enforcement actions against major crypto firms such as Ripple, Coinbase, and Binance. This approach earned him praise for investor protection and criticism for stifling innovation.

The cryptocurrency market is already reacting, and Trump is expected to appoint a more crypto-friendly successor. Bitcoin has surged nearly 60% recently, reflecting investor optimism for a potential regulatory shift.

Bitcoin and other cryptocurrencies enjoyed a bullish rally in response to the news.

Bitcoin price used the bullish tailwinds to inch closer to the coveted $100,000 mark, reaching a new record high around $99,390 on Nov. 22. Breaking above the 0.5 FIB retracement level would allow Bitcoin price to target the 0.382 FIB resistance near $107,240.

However, a rejection here would set the token tumbling to the support level near $89,800. The token’s overbought RSI level, currently at 81.74, could spoil Bitcoin’s fun, but it seems unlikely given the market’s euphoria over Gensler’s exit.

Unsurprisingly, Ripple’s XRP is the next gainer in the crypto market. Ripple has been one of the worst victims of Gensler’s crypto hatred.

XRP price rallied higher, only halting near the $1.45 resistance level. The token could reach higher riding the Gensler exit euphoria, but the token will then face resistance near $1.7. Other tokens rallied too, with ETH price rising nearly 8% and Solana reaching a new ATH.

SEC Chair Gary Gensler’s decision to step down on January 20, 2025, amidst mounting political and industry pressure, was announced via an SEC press release. His resignation, effective before the formal end of his term in 2026, was accompanied by a statement outlining his achievements.

Gensler highlighted reforms in Treasury and equity markets, updates in corporate governance, and enhancements in investor protections. However, his tenure was particularly marked by tensions in the cryptocurrency sector.

Gensler’s “regulation by enforcement” strategy targeted several blockchain firms for alleged violations, resulting in lawsuits and penalties exceeding $21 billion. This heavy-handed approach drew criticism from the crypto industry, which accused him of regulatory overreach and driving innovation offshore.

Critics suggest that the timing of his resignation may be linked to the prospect of a hostile administration and its implications for the crypto space.