Cryptocurrencies are rallying after Gary Gensler, a staunch critic of the industry, announced his resignation as SEC chair. Gensler will step down on 20 January, aligning with President-elect Donald Trump’s inauguration.
Gensler to Step Down Amid Political Shift
Appointed by President Biden in 2021, Gary Gensler was a controversial figure in the crypto space. Known for his regulatory clampdowns, he sought to tame what he termed the “wild west” of the crypto industry. His departure follows Trump’s earlier pledge to remove him on his first day in office.In a post on X (formerly Twitter), Gensler expressed gratitude for his role:
“I thank President Biden for entrusting me with this incredible responsibility.”
Bitcoin surged to a record high of $99,500 (£79,463), with Ether gaining 7% and Dogecoin rising 2% in the past 24 hours. The total market cap of cryptocurrencies now stands at $3.4 trillion, marking a 4.5% rise, according to CoinDesk. Trump’s pro-crypto stance has fueled optimism, with industry players anticipating a shift in regulatory tone.
Regulatory Setbacks for Gensler
Gensler’s tenure at the SEC included attempts to enhance transparency in markets and tighten crypto regulations. However, his agenda faced significant legal challenges:
- A Texas federal court struck down new Treasury market rules on the same day as his resignation.
- Appeals courts overturned SEC measures for private equity and climate disclosures.
Despite his efforts, Gensler’s initiatives were often criticized for exceeding regulatory authority.
What’s Next for the SEC?
Trump is expected to nominate a successor more aligned with his deregulatory stance. Speculation surrounds Teresa Goody Guillén, a securities lawyer with expertise in blockchain and crypto defense, as a potential candidate.
Industry leaders, like Citadel’s Ken Griffin, foresee a rollback of Gensler’s policies. Griffin remarked:
“Much of Gensler’s agenda will not survive… Between the courts and a new SEC, we’re going to see a rollback of the regulatory onslaught.”
