Key Points
- The US SEC Chair’s official statement praised the agency saying it’s been an honor to serve.
- Senator Cynthia Lummis said that his anti-crypto reign will finally come to an end.
The US SEC Chair, Gary Gensler, released an official statement revealing that he will step down from the agency on January 20, 2025, the same day as Donald Trump’s Presidential Inauguration.
Gensler Addresses His Time With the SEC
In his official statement also released via X, Gensler said that the SEC is a remarkable agency, with mission-driven staff and Commission.
He said the SEC is focused on protecting investors, facilitating capital formation, and ensuring that the markets work for investors and issuers alike.
Gensler also said it has been the honor of a lifetime to serve with all of them on behalf of everyday Americans and ensure that the capital markets remain the best in the world.
He is grateful to POTUS for entrusting him with this “incredible responsibility”, saying that the SEC has met its mission and enforced the law without fear of favor.
Bloomberg noted that Gensler’s departure would leave the agency in the hands of an acting chair who is expected to be either Mark Uyeda or Hester Peirce, both Republican commissioners.
Gensler’s Previous Measures and Achievements
Gensler was appointed as the US SEC’s Chair in 2021 by President Joe Biden, and he pursued an aggressive agenda on the crypto industry. This will be remembered due to his tough measures including the following, according to Bloomberg:
- Climate-risk disclosures
- Stock-trading reforms
- Crackdown on crypto scofflaws
His policy achievements include:
- Speeding up the settlement time for US stock trades
- A new regulation that will result in trillions of dollars more in US Treasury market transactions to be centrally cleared each day
- Corporate insiders facing stricter disclosures and rules for stock sales
Trump’s SEC would probably ease enforcement against brokers, banks, and hedge funds for using third-party messaging apps to communicate, notes Bloomberg.
Also, the next chair may reverse the focus on regulating hedge funds and private equity via stronger disclosures.
Friendlier Regulations For the Crypto Industry
Regarding the crypto industry, the sector could experience a change in SEC’s policy, with friendlier regulations.
During Gensler’s time at the SEC, the crypto industry has been pushing back against his harsh measures and said that he had provided no real way for the nascent asset class to fit within decade-old structures.
Senator Cynthia Lummis also addressed Gensler’s statement in a post via X, saying that his anti-digital asset reign will officially come to an end.
She highlighted the good news for the crypto industry and said she hopes the next SEC Chair will follow the law and not try to stand in the way of financial innovation.
Lummis is currently making efforts to establish a Strategic Bitcoin Reserve in the US, recently crafting the BITCOIN Act 2024 bill.
The prospect of friendlier crypto regulations in the US is among the factors that injected optimism into the crypto industry, pushing Bitcoin to new ATHs and placing the digital asset on its path to reaching $100,000.
