30s Summary
Gary Gensler, the head of the U.S. Securities and Exchange Commission (SEC), plans to resign at noon on January 20, coinciding with Donald Trump’s inauguration. Gensler, known for his strict regulations on the crypto industry, won’t continue as a commissioner. His tenure saw significant enforcement actions against crypto firms like Binance, Coinbase, Kraken, and Shapeshift. This period, however, saw the approval of the first bitcoin and ether exchange-traded products. Possible replacements include Teresa Goody Guillén, a former SEC attorney, and Brian Brooks, ex-Acting Comptroller of the Currency. Until a replacement is appointed, the SEC remains balanced between parties.
Full Article
Gary Gensler, the head of the U.S. Securities and Exchange Commission (SEC), is planning to step down the day Donald Trump takes office as the president in January. Known as a frequent adversary of the cryptocurrency industry, Gensler has confirmed he won’t hang around as a commissioner either, which means his strict regulatory policies towards crypto will remain undefended.
Gensler will officially resign at noon on January 20, the same moment Trump is due to be sworn in, according to an SEC press release. Reflecting on his tenure, Gensler praised the agency and noted its mission to protect investors, facilitate capital formation, and ensure markets work for both parties involved. He thanked President Biden and his fellow commissioners for their collaborative work during his term.
Despite hopes from those in the industry that Gensler might adopt a more lenient approach towards crypto, his time at the helm saw numerous enforcement actions against cryptocurrency firms. This extended to cracking down on crypto trading platforms, beyond just the crypto issuers targeted under his predecessor Jay Clayton.
Big names like Binance, Binance.US, Coinbase, Kraken, Shapeshift, etc., faced lawsuits from the SEC under Gensler’s watch. The SEC accused these firms of operating as unregistered securities brokers and clearinghouses. However, Gensler did oversee the approval of the first bitcoin and ether exchange-traded products in the U.S, overturning a decade-long struggle by crypto companies to debut these products.
As yet, Trump is to announce a specific nominee to take over from Gensler as the SEC chair. A handful of potential names are being thrown about, including Teresa Goody Guillén, a former SEC attorney, and Brian Brooks, the former Acting Comptroller of the Currency who briefly ran Binance.US. Until Trump’s appointment is confirmed, the SEC will operate with two members from each party, thereby blocking any major policy shifts or enforcement decisions.