Securities and Exchange Commission (SEC) Chair Gary Gensler on Thursday announced the timeline for his departure from the regulatory agency he's led for more than three years.
Gensler will resign from the SEC at noon on Jan. 20, 2025, with his departure set to occur on Inauguration Day, at the time President-elect Donald Trump is sworn in as the nation's 47th president. Gensler's term as an SEC commissioner was due to expire on June 5, 2026.
SEC chairs are appointed by the president and Gensler's resignation will afford President-elect Trump the opportunity to nominate Gensler's long-term successors. In recent presidential transitions, sitting SEC chairs who are from the opposite party of the incoming president have resigned on or before Inauguration Day to allow that process to play out.
"The Securities and Exchange Commission is a remarkable agency," Gensler said in a statement. "The staff and the Commission are deeply mission-driven, focused on protecting investors, facilitating capital formation, and ensuring that the markets work for investors and issuers alike. The staff comprises true public servants. 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."
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"I thank President Biden for entrusting me with this incredible responsibility. The SEC has met our mission and enforced the law without fear or favor," Gensler said, while also expressing gratitude to his fellow SEC commissioners and others in Congress and regulatory agencies.
Gensler faced criticism over his approach to regulating the digital assets sector amid the emergence of cryptocurrencies and non-fungible tokens (NFTs) in recent years. Under his leadership, the SEC brought enforcement actions against a number of crypto firms and other entities in the digital assets space as part of a push to root out bad actors.
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Critics argued the agency was too aggressive in its oversight of the emerging industry and threatened to stifle its growth.
Gensler's regulatory approach prompted Trump to pledge to remove him as SEC chair during the campaign, while Vice President Kamala Harris opted against taking a stance on whether he would remain in the role despite calls from some of her supporters to do so.
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Early in 2024, the SEC under Gensler approved the first spot bitcoin exchange-traded funds (ETFs) that track the price of the cryptocurrency, including those offered by a variety of financial firms. The first batch of approvals included 11 spot bitcoin ETFs.
Over the summer, the SEC granted approval for stock exchanges to begin listing the first spot ethereum ETFs that track the price of the ether cryptocurrency.
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Trump is yet to nominate Gensler's successor at the SEC, though he may put forward the nomination. The Senate Banking Committee has jurisdiction over SEC nominees.
