Securities and Exchange Commission Chair Gary Gensler, known for his assertive oversight of cryptocurrencies, has announced his resignation effective January 20. During his tenure, Gensler advocated for regulatory changes aimed at safeguarding investors, a stance that drew criticism from industry stakeholders and many Republicans who viewed it as regulatory overreach.
President-elect Donald Trump had pledged to remove Gensler, a promise fulfilled with Gensler's decision to step down on the day of Trump's inauguration. Following the news of Gensler's resignation, Bitcoin surged by 40%, reaching new highs and nearing the $100,000 mark.
Gensler gained notoriety for characterizing the crypto landscape as 'the Wild West' in a speech during his first year as chair in 2021. He highlighted concerns about fraud, scams, and misinformation prevalent in the crypto space, emphasizing the need for more transparent and balanced information for investors.
Under Gensler's leadership, the SEC took action against various players in the crypto industry for offenses such as fraud and market manipulation. Notably, the commission recently filed fraud charges against three companies posing as market makers and nine individuals attempting to manipulate crypto markets.
Moreover, Gensler's tenure saw the SEC approve exchange-traded funds (ETFs) tracking the spot price of bitcoin in January 2024. This move aimed to enhance accessibility to bitcoin for investors, eliminating the barriers associated with traditional investment methods.
In his farewell statement, Gensler commended the SEC staff for their dedication to protecting investors, facilitating capital formation, and ensuring market integrity. He expressed gratitude for the opportunity to serve alongside them in upholding the integrity of the U.S. capital markets.
Prior to his role at the SEC, Gensler served as Chair of the U.S. Commodity Futures Trading Commission, where he spearheaded reforms in the swaps market. He also played key roles in crafting financial legislation, including the Sarbanes-Oxley Act of 2002, during his tenure as a senior advisor to U.S. Senator Paul Sarbanes and as an undersecretary of the Treasury.
