Anti-Crypto Gensler to Depart Agency When Trump Takes Office

The crypto world is buzzing with the news many have anticipated: US Securities and Exchange Commission (SEC) Chair Gary Gensler, renowned for his stringent approach to cryptocurrency regulation, will step down on 20 January 2025.

The announcement, made on 21 November, coincides with the inauguration of crypto-friendly President-elect Donald Trump for his second term.

Gensler's departure marks the end of a tenure that began in April 2021 and was defined by aggressive litigation against the digital assets industry.

Reflecting on his time at the SEC, Gensler described it as the "honor of a lifetime" to work alongside the Commission's staff and expressed gratitude to President Biden for the opportunity to serve.

His resignation signals a potential shift in the regulatory landscape, leaving many wondering what the future holds for the crypto industry under new leadership.

Gensler said in a statement:

“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's Tenure Marred by Clashes with Wall Street & Crypto

Since assuming office in April 2021, Gensler has led a series of ambitious and controversial regulatory initiatives targeting the cryptocurrency industry.

His tenure has been defined by sweeping reforms, including linking executive compensation to company performance and strengthening investor protections within the crypto markets.

Under his leadership, the SEC adopted an assertive regulatory stance, initiating over 100 enforcement actions against crypto-related entities.

Gensler became a central figure in the industry's crackdown, particularly following the collapse of FTX in 2022.

His vigorous pursuit of enforcement earned him the reputation of being the "chief crypto antagonist."

On 14 November, Gensler reaffirmed his firm stance, emphasizing the need for approximately 10,000 tokens he deems securities to register and provide transparent disclosures.

While pointing to the SEC’s approval of spot Bitcoin exchange-traded funds (ETFs) as evidence of collaboration with the industry, he criticised certain crypto issuers for failing to adhere to what he described as “common-sense rules of the road.”

As his four-year term nears its conclusion, Gensler's leadership remains polarising.

In remarks widely seen as a farewell, he defended his aggressive approach to crypto regulation, underscoring his belief in robust enforcement as the cornerstone of market integrity.

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Is Gensler's Early Resignation Announcement a Smart Move or a Safe Call?

In July, Trump vowed to remove Gensler as part of a broader effort to appeal to crypto advocates ahead of the 5 November presidential election.

While the president has the authority to appoint the SEC chair, he cannot compel a commissioner to leave entirely—making Gensler's planned January departure particularly notable.

Trump, who has promised to transform the US into the "crypto capital of the world," pledged to replace agency heads, including Gensler, with more industry-friendly leaders.

Following Trump's election victory, Gensler's exit seemed inevitable, given his repeated calls for crypto firms to "come in and register" under strict SEC oversight.

Tron founder Justin Sun even humourously offered Gensler a job in the crypto industry he has long criticised.

Trump, who has signalled sweeping changes to crypto regulations, has yet to nominate a successor.

In Gensler’s absence, the SEC will be evenly split between two Democratic and two Republican commissioners, delaying any significant policy shifts until a Republican majority is confirmed by the Senate.

This transitional period could slow major enforcement actions or regulatory changes.

Gensler's departure marks a turning point for the SEC's approach to crypto regulation.

The crypto community is jubilant upon receiving news of his looming resignation, as expected.

Some going as far as saying that Gensler is "one of the worst things that have happened in the history of the United States”.

The timing of Gensler's resignation announcement is peculiar.

Is it a strategic decision to step down quietly rather than face public dismissal under Trump's administration?

Whether his resignation paves the way for a more collaborative stance or a complete overhaul of federal crypto policies remains to be seen.