Gary Gensler to Resign as SEC Chairman in January 2025, Marking the End of His Controversial Term
Gary Gensler, the controversial chairman of the Securities and Exchange Commission (SEC) and a prominent figure in the aggressive regulation of cryptocurrencies, has announced that he will step down from his position when Donald Trump takes office on January 20, 2025. In an unusual move, Gensler will not only relinquish the chairmanship but also resign as commissioner, leaving the SEC without its key advocate for strict policies until the end of his term in 2026.
Gensler described the SEC as an “outstanding agency” in a statement, praising its role in protecting investors and ensuring transparent markets. He thanked President Joe Biden and his fellow commissioners while highlighting the agency’s efforts to preserve the integrity of the US financial markets. This announcement marks the end of an era in which the SEC, under Gensler’s leadership, engaged in decisive legal battles against the crypto industry.
The Repressive Nature of Crypto Regulation
Since taking over the SEC in April 2021, Gensler has made the regulation of cryptocurrencies a top priority. Despite hopes for a more permissive regulatory framework, he adopted a strict stance, launching numerous cases against major crypto trading platforms. Binance, Coinbase, Kraken, and others were targeted for their alleged operation as unregistered securities intermediaries. This strategy led to a significant increase in crypto-related lawsuits, with 18% of the SEC’s investigations in 2024 focusing on the sector, despite its limited impact on US financial markets.
Under Gensler’s tenure, the SEC also oversaw the approval of the first Bitcoin and Ethereum Spot ETFs, a decision that initially faced resistance. However, a judicial ruling compelled the SEC to authorize these ETFs, forcing Gensler to vote alongside the two Republican commissioners.
A Period of Uncertainty for the SEC
Gensler’s departure will leave a strategic void within the agency, especially during a presidential transition. Until a new chairman is nominated and confirmed by the Senate, the SEC will be split between two Democratic and two Republican members, preventing decisive progress in regulation policy. Several names are being considered as potential successors, including Teresa Goody Guillén, a regulation specialist, and Brian Brooks, former chief at Binance.US and a well-known figure in the crypto ecosystem.
However, institutional balance may delay major changes until a successor is confirmed. In addition, there are ongoing legal challenges: just hours before Gensler’s resignation announcement, a federal court invalidated the SEC’s attempt to broaden the legal definition of a “dealer,” putting a brake on its regulatory ambitions, including its case with ConsenSys.
A Controversial Legacy
Gary Gensler’s legacy at the SEC remains deeply polarizing. While his supporters praise his efforts to impose strict rules on an industry perceived as opaque and risky, critics denounce a repressive framework that hampers innovation. His strategy, based on rigorous enforcement of existing laws rather than creating new, adapted rules, has created escalating tensions with the crypto industry and certain lawmakers.
Gensler’s departure presents an opportunity for Donald Trump and his administration to redefine the trajectory of crypto regulation in the United States. The future of the industry will largely depend on the direction taken by the next SEC chairman and the approach of the expected Republican majority in the Commission.
