Gensler Exits Before Trump Takes Office

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.

Gary Gensler, the Chairman of the U.S. Securities and Exchange Commission (SEC), will step down on Jan. 20, 2025.

Gensler Exits Before Trump Takes Office

Gensler’s departure, announced in a statement on Friday, will create an opening at the SEC for President-elect Donald Trump to fill. Gensler, a Biden appointee, was set to serve until 2026.

However, Trump had expressed his intention to fire Gensler, who was a target of crypto industry ire over the SEC’s aggressive approach.

During Gensler’s tenure, several crypto and blockchain firms faced lawsuits or threats of legal action from the SEC. The regulator’s “regulation by enforcement” approach saw the agency levy hefty fines and extract settlements from crypto firms.

Gensler, who before joining the SEC endorsed the blockchain Algorand, oversaw the SEC’s lawsuits against Ripple, Consensys, and Opensea, among others. Some of these lawsuits were filed despite the companies’ attempts to cooperate with the SEC, sparking criticism from the blockchain and crypto industries.

According to CNBC, Gensler’s departure will leave three vacancies at the SEC, including two commissioner slots set to become vacant in 2024 and 2025.

Gensler’s approach to regulating crypto and blockchain firms drew sharp criticism from the industry, with many arguing that it drove companies to seek more favorable jurisdictions. However, it also motivated some crypto industry players to financially support Trump and other pro-crypto candidates in the recent U.S. elections.

Trump, who has vowed to end the SEC’s alleged bias against crypto firms, has already seen his victory spark a bitcoin rally that saw the top crypto asset’s value increase by over 60% in less than three weeks.