SEC Chair Resigning in January

Gary Gensler, the Securities and Exchange Commission Chair, known for his tough stance on cryptocurrencies and financial markets, has announced his upcoming resignation on January 20. While some praised Gensler for his protective measures for investors, others criticized him for overreach. President-elect Donald Trump, who promised to remove Gensler, now sees his departure on inauguration day.

Bitcoin’s value has surged by 40% since Trump’s election victory, hitting record highs near $100,000. Following Gensler’s resignation announcement, Bitcoin saw an additional rise. In a speech during his first year as Chair, Gensler likened the cryptocurrency market to the “Wild West,” citing concerns about fraud, scams, and lack of complete information available to investors.

Despite regulatory actions taken against fraud and market manipulation in the crypto industry during Gensler’s tenure, including recent charges last month, access to cryptocurrencies has notably expanded. The SEC approved exchange-traded funds (ETFs) tracking bitcoin’s spot price, a move that allowed easier access to the digital asset for investors.

While acknowledging the SEC’s previous rejection of similar ETF applications, Gensler emphasized the changing landscape that led to the recent approval. He refrained from endorsing the merits of bitcoin, highlighting its speculative nature and potential illicit uses. Gensler faced challenges such as the meme stock phenomenon and pushed for quicker settlement of stock trades following the GameStop trading frenzy earlier this year.

Critics of the SEC under Gensler have found some regulatory proposals overly burdensome, including increased disclosure requirements around environmental, social, and governance practices for advisers and companies. Gensler defended the SEC’s mission to protect investors, facilitate capital formation, and ensure market integrity. Before serving as SEC Chair, Gensler led significant financial reforms during his tenure at the Commodity Futures Trading Commission and the U.S. Treasury Department.