Gary Gensler, the chairman of the U.S. Securities and Exchange Commission (SEC), is increasingly expected to resign before Donald Trump takes office in January.
Gensler's resignation rumors have been fueled by growing backlash from the cryptocurrency community against his leadership.
Gensler, SEC Chairman, May Resign Before Next January
On November 15, Fox Business reporter Eleanor Terrett hinted that Gensler could announce his resignation shortly after Thanksgiving.
"While the exact timing of his resignation announcement is unknown, the Washington, D.C. rumor mill suggests he is likely to announce his departure in early January, shortly after the new year," Terrett said.
Notably, Gensler's own recent remarks have also fueled these speculations. In a November 14 speech, he expressed pride in his work at the SEC and emphasized the agency's efforts to protect American investors. Gensler's speech contained content that could be interpreted as reflections on his tenure and a farewell message.
"I have taken great pride in working alongside my SEC colleagues, who work tirelessly every day to protect America's households on the financial superhighway," Gensler wrote.
Under his leadership, the SEC became the first to approve a spot cryptocurrency exchange-traded fund (ETF), which Gensler hailed as an important milestone. He contrasted this with the previous administration's efforts to block similar progress.
However, during his tenure, Gensler has faced strong criticism from the cryptocurrency sector. Gemini co-founder Tyler Winklevoss accused Gensler of harming the industry with his aggressive regulatory approach, claiming he prioritized personal ambition over fair regulation and describing his actions as harmful and intentional.
Winklevoss warned the cryptocurrency community against associating with Gensler, saying:
"No apology can undo the damage he has done to our industry and our country. This type of individual has no place in any institution, large or small. Americans are tired of paying taxes to a government that is supposed to protect them, but instead uses them to build the careers of politicians."
Gensler's SEC has pursued high-profile enforcement actions against major cryptocurrency companies like Binance, Coinbase, and Ripple. Critics argue that this enforcement-centric strategy has stifled innovation and fostered a hostile relationship between the regulator and the industry.
Crypto-Friendly Successor? Attention Turns to Gensler's Potential Replacement
As the rumors of Gensler's resignation spread, there is growing interest in his possible successor under the Trump administration. Potential candidates include Robinhood's chief legal officer Dan Gallagher, former SEC legal counsel Bob Stevins, and current Republican SEC Commissioner Mark Uyeda.
While Gallagher appears reluctant to take on the role, former SEC Chairman Jay Clayton has endorsed Stevins. Other names mentioned include Brad Bondi, Paul Atkins, Heath Tarbert, and Norm Champ.
The next SEC chairman will inherit a divided regulatory environment and the challenge of improving the tense relationship with the cryptocurrency sector. As the industry continues to evolve, the SEC's approach under new leadership will play a crucial role in shaping the future of cryptocurrency in the United States.
