SEC Chair Gensler to step down in January

SEC Chair Gensler to step down in January
Federal securities agency confirms official timing of his resignation, recounts record of reforms and enforcement actions.
NOV 21, 2024

After weeks of speculation in the wake of Donald Trump's presidential election win, the official timing of Gary Gensler, the chair of the Securities and Exchange Commission's resignation has been confirmed.

The agency announced Thursday that Gensler will be stepping down during on January 20, 2025 – the day of Donald Trump's inauguration – concluding a tenure marked by significant regulatory reforms and high-profile enforcement actions.

Gensler, who has led the SEC since April 2021 after getting President Joe Biden's endorsement, oversaw initiatives designed to enhance transparency, resiliency, and efficiency in US capital markets, along with a vigorous enforcement agenda aimed at protecting investors.

“The Securities and Exchange Commission is a remarkable agency,” Gensler said in the SEC's official statement. “The staff and the Commission are deeply mission-driven, focused on protecting investors, facilitating capital formation, and ensuring that the markets work for investors and issuers alike.”

During his time at the helm, Gensler presided over several updates to equity and treasury markets, corporate governance, and disclosure requirements. Under his leadership, the SEC implemented long-awaited changes to the National Market System, shortening settlement cycles and reducing transaction fees. Treasury market reforms were also introduced, including rules promoting central clearing to reduce risks and costs in the $28 trillion market.

The SEC also adopted rules requiring investment firms to disclose risks around cybersecurity and climate, alongside enhanced protections for investors through improved data breach notifications. “The SEC has met our mission and enforced the law without fear or favor,” Gensler said, reflecting on his term.

Enforcement was a cornerstone of Gensler’s leadership. The SEC filed over 2,700 enforcement actions between fiscal years 2021 and 2024, resulting in more than $21 billion in penalties and disgorgements. Over $2.7 billion was returned to harmed investors during this time, and $1.5 billion was awarded to whistleblowers.

Gensler's tenure at the SEC was also notable for its aggressive stance on crypto markets, pursuing fraud and registration violations, with courts consistently upholding the Commission’s authority. That policy position means there will be no love lost between him and denizens of the cryptosphere, where speculation has run rampant in recent weeks over the timing of his resignation.

President-elect Donald Trump, whose November 5 victory at the polls sparked a wave of crypto bullishness over the prospect of a friendlier administration, said at a July Bitcoin industry event that he would fire Gensler on "day one." Following the election results, rumors have swirled that he would vacate his position well before Trump takes office, with some saying he would be stepping down after Thanksgiving.

Prior to joining the SEC, Gensler chaired the Commodity Futures Trading Commission during the Obama administration, where he led reforms of the $400 trillion swaps market. He was also instrumental in drafting the Sarbanes-Oxley Act as an advisor to Senator Paul Sarbanes. Earlier in his career, Gensler worked in leadership roles at Goldman Sachs.

In recognition of his public service, Gensler received the Alexander Hamilton Award, the Treasury Department’s highest honor. Reflecting on his time at the SEC, he expressed gratitude to his colleagues and President Biden for the opportunity to serve.

“I thank President Biden for entrusting me with this incredible responsibility," he said. "The SEC has met our mission and enforced the law without fear or favor."

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