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Democrat Jaime Lizárraga is stepping down from the US Securities and Exchange Commission (SEC) in January, partly due to his wife’s serious illness. His departure will leave the Republicans with a majority in the SEC, potentially altering its policy on cryptos. Lizárraga’s exit will leave only Democrat Caroline Crenshaw in the five-member commission till 2025., The SEC under Chair Gary Gensler has been strict on enforcing rules against crypto companies. Gensler argued that firms such as Coinbase and Binance were operating as unregistered securities exchanges., The question is whether crypto policies will change under younger Republican dominance.

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Another Democrat on the Securities and Exchange Commission (SEC), Jaime Lizárraga, is stepping down in January just like Chair Gary Gensler. This is going to give the Republicans a majority in the SEC, especially under new President Donald Trump. Lizárraga explained that he’s leaving on January 17, partly due to his wife’s serious illness and their family’s decision to slow things down. Following his exit, only one Democrat, Caroline Crenshaw, will remain in the five-member commission’s makeup till 2025.

In the recent years, the SEC has seen strict enforcement against crypto companies under Gensler’s supervision. He maintained that companies like Coinbase and Binance were operating as unregistered securities exchanges. Their token transactions could often be classified as securities, according to him. Plenty of federal court cases have been contingent on this perspective. Post-Lizárraga’s departure, the newly constituted commission will have to carry on the work on these court cases.

If Trump appoints a current Republican commissioner as the new chair, which is likely going to be Mark Uyeda, the policy priorities and legal stance on crypto could be subject to changes. Considering that the Republicans will have the majority in the commission, this could speedily happen. Gensler has appreciated Lizárraga for his work in enhancing the conditions of everyday Americans and fostering the interests of investors, issuers and marketplaces.