Gary Gensler, chair of the US Securities and Exchange Commission (SEC) and a prominent critic of the cryptocurrency industry, has announced his resignation. Gensler will officially leave his position on 20 January 2025, the day Donald Trump is inaugurated as the next US president.
In a post on X, Gensler expressed gratitude to President Joe Biden for his appointment in 2021 and highlighted his efforts to regulate the crypto sector, often referred to as the “wild west.” Gensler had pushed for stricter oversight, citing widespread fraud and abuse in the industry.
Crypto Markets React Positively
The news of Gensler’s departure sent shockwaves through the cryptocurrency market, pushing Bitcoin to a record high of $99,500 (£79,463). Ether climbed 7% in the past 24 hours, while Dogecoin rose 2%. The total market capitalisation of cryptocurrencies reached a historic $3.4tn, according to CoinDesk.
Trump’s more pro-crypto stance has buoyed investor confidence. Crypto firms, which have donated over $119m to congressional campaigns, are optimistic about favourable regulatory changes under the new administration.
Gensler’s Controversial Tenure
Gensler’s tenure at the SEC was marked by aggressive regulatory efforts targeting the crypto sector. However, his initiatives faced significant legal setbacks. A federal court in Texas recently struck down SEC rules for the $27tn US Treasury market, while a US appeals court invalidated measures for increased transparency in private equity and hedge funds.
Under Gensler, the SEC also sought stricter climate and cybersecurity disclosures, but many of these measures faced resistance and were halted by lawsuits.
Trump’s Likely SEC Pick
President-elect Trump is expected to nominate a successor with a deregulatory agenda. Teresa Goody Guillén, a securities lawyer and blockchain expert, is reportedly under consideration. If appointed, she could dismantle many of Gensler’s unfinished proposals and bring a more lenient approach to crypto regulation.
Ken Griffin, founder of the hedge fund Citadel, predicted a significant rollback of Gensler’s policies, citing their limited survival prospects under a new SEC leadership.
As the transition unfolds, the cryptocurrency industry is poised for a new chapter, with investors hopeful for reduced regulatory pressures and a more favourable environment.
