Gary Gensler, Chair of the U.S. Securities and Exchange Commission (SEC), announced on Thursday that he will step down from his role effective January 20, 2025, coinciding with President-elect Donald Trump’s inauguration. Gensler’s term was originally set to expire in June 2026, but it is customary for agency leaders to resign when a new administration takes office.

In a statement, Gensler said, “The Securities and Exchange Commission is a remarkable agency. It has been an honor of a lifetime to serve with the staff on behalf of everyday Americans and ensure that our capital markets remain the best in the world.” He also expressed gratitude to President Biden and his colleagues at the SEC.

During his three-year tenure, Gensler prioritized investor protection, capital formation, and regulatory oversight. However, his approach to the cryptocurrency sector drew significant criticism for being overly aggressive. The SEC, under Gensler’s leadership, brought numerous enforcement actions against crypto firms, alleging that many cryptocurrencies were unregistered securities.

Gensler’s tenure was marked by high-profile enforcement actions, including lawsuits against Coinbase and Ripple. Observers speculate that these cases may be revisited or even dropped under new SEC leadership. Ripple and Coinbase could be among the biggest beneficiaries of this transition.

President-elect Trump has signaled support for the cryptocurrency sector, including proposals to establish a national Bitcoin reserve. Individuals reportedly under consideration to replace Gensler include securities lawyer Teresa Goody Guillén and former Acting Comptroller of the Currency Brian Brooks, both of whom are viewed as more favorable to digital assets.

The Trump administration is expected to chart a new regulatory path for Bitcoin and crypto, potentially easing restrictions imposed under Gensler’s leadership. Industry participants are closely watching for Trump’s nomination for SEC Chair, which will shape the future of the agency’s approach to digital assets and broader market oversight.

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