Gary Gensler will leave the SEC on January 20, 2025, coinciding with the inauguration of President-elect Donald Trump.
The U.S. Securities and Exchange Commission (SEC) has officially confirmed that Chairman Gary Gensler will leave office on January 20, 2025, coinciding with the inauguration of President-elect Donald Trump. This decision marks the end of Gensler's challenging tenure, which was shaped by over 100 lawsuits targeting companies operating in the cryptocurrency field.
Gensler's departure occurs against the backdrop of President-elect Trump's repeatedly expressed positive views on cryptocurrencies, as well as his commitment to creating a more favorable legal environment for the industry. Previously, in July 2024, Trump had announced his intention to fire Gary Gensler, a move seen as an attempt to garner support from the cryptocurrency community. Although the president does not have direct authority to dismiss an SEC commissioner, Gensler's resignation decision clearly reflects the significant power shift at the agency.
During his tenure, since taking office in 2021, Gensler has been steadfast in his strict management policy towards the cryptocurrency market. He has considered the majority of the over 10,000 existing tokens as securities, requiring issuing organizations to comply with registration regulations. While the SEC under his leadership has approved Bitcoin ETFs, Gensler's rigid approach towards cryptocurrency companies has often been criticized for stifling innovation and hindering the industry's development.
In contrast, Trump has publicly expressed a vision of making the U.S. a global cryptocurrency hub. Sources suggest he is considering appointing Commodity Futures Trading Commission (CFTC) Commissioner Summer Mersinger, who holds pro-cryptocurrency views, to lead the SEC. Additionally, the plan to establish a dedicated cryptocurrency policy position at the White House is further evidence of Trump's strong commitment to promoting the growth of this industry.
Gensler's decision comes after Gurbir Grewal, the SEC's Director of Enforcement, announced his resignation on October 11. Grewal was also known for his firm stance on cryptocurrency-related violations.
