United States Securities and Exchange Commission (SEC) Chair Gary Gensler, renowned for his stringent approach to cryptocurrency regulation, will step down on January 20, 2025. The announcement, made on November 21, coincides with the inauguration of President-elect Donald Trump, who has pledged to adopt a more crypto-friendly stance.
“It has been an honour 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 stated in a farewell message.
Trump’s Crypto Agenda Gains Momentum
Trump, who campaigned on making America “the crypto capital of the world,” had earlier promised to dismiss Gensler in a bid to appeal to cryptocurrency advocates. While the president can appoint the SEC Chair, he cannot force a commissioner to leave entirely—a decision Gensler appears to have made voluntarily.
The President-elect is reportedly planning significant changes within the U.S. regulatory landscape to foster crypto innovation. Sources suggest he is considering appointing Summer Mersinger, a Republican Commissioner at the Commodity Futures Trading Commission (CFTC) known for her pro-crypto stance, to lead the agency. Additionally, Trump may create a dedicated White House position to oversee cryptocurrency policy.
Gensler’s Controversial Crypto Legacy
Appointed in 2021, Gensler’s tenure as SEC Chair was marked by an aggressive regulatory crackdown on the crypto industry. The agency pursued over 100 enforcement actions against cryptocurrency companies, with Gensler asserting that nearly 10,000 tokens should be classified as securities.
Speaking on November 14, Gensler defended the SEC’s regulatory approach, stating his goal was to ensure crypto firms “register and give proper disclosure to the public.” He pointed to the agency’s approval of spot Bitcoin exchange-traded funds (ETFs) as evidence of a willingness to collaborate with the industry but criticised issuers for failing to follow “common-sense rules of the road.”
However, Gensler’s hardline stance was not without controversy, drawing ire from industry leaders and crypto enthusiasts who argued that his approach stifled innovation.
Changing of the Guard
Trump’s planned overhaul of financial regulatory leadership signals a potential pivot in U.S. crypto policy. The departure of Gensler follows the October 11 resignation of SEC Enforcement Director Gurbir Grewal, another key figure in the agency’s rigorous policing of the industry.
With the incoming administration promising a more accommodating regulatory environment, the crypto industry is poised to see significant changes. Observers are now closely watching Trump’s next moves, particularly his selection of agency leaders and the potential creation of a White House crypto policy role.
