SEC Chair Gensler to exit, clearing way for Trump pick
WASHINGTON
(FILES) Gary Gensler, Chair of the US Securities and Exchange Commission, arrives to testify during a Senate Banking, Housing, and Urban Affairs oversight hearing to examine the US Securities and Exchange Commission, on Capitol Hill in Washington, DC, on Sept. 12, 2023.
The top U.S. securities regulator, a skeptic towards cryptocurrency who was appointed by President Joe Biden, has announced he will step down in January when Donald Trump takes office.
Gary Gensler, chair of the Securities and Exchange Commission (SEC), said he will resign on Jan. 20, the same day Trump assumes the presidency.
The move clears the way for the Republican president-elect to pick Gensler's successor.
Gensler's five-year term does not end until 2026, but agency chairs customarily step down when the party of presidential administration turns over.
Gensler took office in April 2021.
A former mergers and acquisitions partner at Goldman Sachs, Gensler led rulemaking proposals intended to improve efficiency in capital markets.
But his future in Washington looked precarious in light of the SEC's confrontational approach to cryptocurrency throughout the Biden years.
During the campaign, Trump drew heavy financial support from cryptocurrency backers, some of whom are also close to the president-elect's close ally, Tesla and SpaceX CEO Elon Musk.
In the absence of clear regulations, Gensler took an aggressive stance toward digital currencies, treating them like traditional financial securities such as stocks and bonds.
The approach has prompted SEC lawsuits against major trading platforms including Binance, Coinbase, and Kraken, along with various smaller startups.
Leading legislation in Washington would shift oversight to the Commodities Futures Trading Commission, known for its lighter-touch approach to regulation.
Gensler thanked Biden and fellow commissioners, saying in a statement, "The SEC has met our mission and enforced the law without fear or favor."
