SEC Chair Gary Gensler will step down Jan. 20, making way for Trump replacement
Securities and Exchange Commission Chair Gary Gensler will resign on Jan. 20, the agency announced Thursday, paving the way for President-elect Donald Trump to select a replacement immediately.
Gensler took over the SEC in 2021, and under his leadership the commission has taken an ambitious but controversial approach to several regulatory issues, including cryptocurrencies. Trump has not announced his pick to lead the SEC, but the expectation is that the next chair will be friendlier to Wall Street and crypto.
SEC commissioners serve five-year terms, so Gensler could have in theory stayed on until at least 2026. Instead, he is leaving the agency completely, as was widely expected.
“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,” Gensler said in a press release.
Under Gensler, the SEC pushed to require more disclosures from publicly traded companies and financial advisors for investors. The agency also sped-up settlement times for stock trades to just one day, a change spurred in part by the meme-stock trading in early 2021.
Gensler’s SEC has had several high profile disputes with the crypto industry, including a legal fight with Grayscale to block bitcoin ETFs. Grayscale won in court, and billions of dollars have flowed into those new funds since they launched in January. The SEC also sued several large digital asset companies in recent years over how they were handling or selling crypto, including Coinbase, with mixed results.
Trump could have the opportunity to quickly reshape the SEC. In addition to Gensler’s soon-to-be vacant seat, the terms for two of the other four commissioners expire in either 2024 or 2025.
Commissioners can serve up to 18 months beyond the end of their term. Presidential appointments to the SEC are subject to the advice and consent of the Senate.