- Gary Gensler oversaw 100+ SEC enforcement actions against crypto firms during his tenure.
- Under Gensler, the SEC approved its first spot Bitcoin ETFs.
- Gensler’s SEC term ends on Jan 20, 2025, aligning with Trump’s inauguration.
The Chair of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, has declared his intention to resign as the head of the commission on January 20, 2025. This date also corresponds to the Inauguration of President-elect Donald Trump, which may bring significant changes in the regulations.
Gensler’s Tenure and Focus on Cryptocurrency
As the head of the SEC since April 2021, Gary Gensler provided for a active and aggressive enforcement. Some of his actions include establishing over a hundred enforcement actions targeting crypto companies over registration violations of securities, fraud, and wash trading. Notably involving significant legal proceedings against leading trading platforms including, Coinbase, Binance, and Kraken.
Gensler also played a role in approving spot Bitcoin exchange-traded funds (ETFs), a move that followed years of resistance by the SEC. A court order forced the agency to permit such products, leading to many institutional investors being drawn to them. Still, skeptics claim that his attitude led to the suppression of innovation and forced crypto-related companies to work abroad.
Broader Contributions to U.S. Capital Markets
Apart from cryptocurrency, Gensler introduced major changes to enhance the U.S. financial markets. The changes comprised reducing the stock trade settlement period to one day, updating the equity market rules, and improving the disclosures on corporate governance, cybersecurity, and climate risks.
He has made significant progress in the position, specifically strengthening the Public Company Accounting Oversight Board (PCAOB). During his term, deals were made with the Chinese authorities to monitor the audit firms associated with Chinese companies listed in the United States. This further assured investors’ confidence in cross-border business in the financial sector.
What Lies Ahead for the SEC ?
Gensler’s resignation raise concerns of the SEC direction during Trump’s administration. Possible successors are Teresa Goody Guillén who has practiced as an Attorney at the SEC and a pro-crypto advocate, and Brian Brooks who served as the Comptroller of the United States Currency and the former Chief Executive Officer of Binance in the United States.
If no chair of the SEC is appointed and confirmed, then Democrats and Republicans will have an equal number of commissioners at the commission. However, this may slow down big changes in policies and enforcement actions. New leadership will likely have a more positive attitude towards cryptos, aligning with most Republicans’ beliefs about market innovation and advancement.
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