- SEC Chair Gary Gensler will step down on January 20, 2025, coinciding with Donald Trump’s presidential term
- His departure fuels hopes for more lenient cryptocurrency regulation under a new SEC leader
What happened
US Securities and Exchange Commission (SEC) Chair Gary Gensler announced on Thursday, November 21, that he will resign on January 20, 2025. In recent years, the agency filed major lawsuits against industry giants like Coinbase for failing to register legally.
Since 2021, Gensler has led over 100 enforcement actions targeting unregistered securities and fraudulent activities in crypto.
His actions and statements made him a villain to some in the crypto industry during his SEC tenure. Gensler argued most cryptocurrencies qualify as securities and urged crypto firms to register with the SEC. His departure aligns with the start of President-elect Donald Trump’s administration, promising a friendlier stance on digital assets.
“I welcome the news of Chair Gensler’s retirement,” Rep. Wiley Nickel, D-N.C., said in a statement on Friday afternoon. “His tenure has been marked by overreach, excessive and misguided rulemaking, regulation by enforcement, and an adversarial approach to blockchain innovation.”
Also read: 18 states sue SEC in attempt to regulate cryptocurrency industry
Also read: Trump, the crypto advocate? Analysing Trump cryptocurrency policies
What it’s important
Gary Gensler’s departure as SEC Chair represents a potential turning point for cryptocurrency regulation in the U.S., influencing a wide spectrum of stakeholders. The SEC’s enforcement-heavy approach under Gensler has significantly impacted startups and smaller crypto firms. For instance, Ripple Labs, embroiled in a long legal battle with the SEC, has highlighted the challenges companies face under unclear regulations. Such disputes not only drain resources but also create uncertainty that deters innovation and investment. A shift to clearer, collaborative policies could help emerging firms like ConsenSys, a blockchain software company, or smaller players entering the NFT space, to thrive without fear of retroactive enforcement
Globally, countries like Singapore and the EU are gaining traction by fostering innovation through supportive regulations, such as Europe’s Markets in Crypto-Assets (MiCA) framework. These jurisdictions offer clearer rules and protections, attracting talent and capital. The U.S. risks falling behind in this competitive landscape unless it adjusts its strategy. Donald Trump’s pro-crypto administration promises to address these gaps by promoting innovation-friendly policies, such as appointing crypto advocates to leadership positions and introducing a dedicated crypto regulatory office.
