KEY POINTS
- Lizárraga will leave the SEC three days before Donald Trump's inauguration
- He voted against spot Bitcoin ETFs in January, alongside Commissioner Crenshaw
- Gensler is also leaving in January even as he still has over a year left in his term
The U.S. Securities and Exchange Commission (SEC) will see another Democratic leader leave in January as Commissioner Jaime Lizárraga revealed he will step down ahead of President-elect Donald Trump's inauguration.
Lizárraga, whose term is supposed to expire in 2027, told Bloomberg Law he will spend more time with his family and wife, Kelly, who is battling breast cancer.
"In reflecting on the challenges that lie ahead, we have decided that it is in the best interests of our family to close this chapter in my 34-year public service journey. Until my departure in January, I will remain fully engaged in the Commission's ongoing work and activities," he said.
The Democrat, who previously worked at the financial regulator's legislative affairs unit and was also an ex-aide to former House Speaker Nancy Pelosi, will resign on Jan. 17, 2025, three days before the new president's inauguration.
Lizárraga's Notable Actions as SEC Commissioner
Throughout his Commissioner tenure, Lizárraga was known to have followed after SEC Chair Gary Gensler's leadership and voting decisions.
He helped the agency adopt corporate cybersecurity disclosure rules, and as aligned with the Democratic Party's goals, he also supported the greenhouse gas emissions reporting rules earlier this year.
In the cryptocurrency space, Lizárraga is known for voting against spot Bitcoin exchange-traded funds (ETFs). Notably, Gensler, a notorious figure in the eyes of crypto users and industry leaders, voted in favor of the funds.
Lizárraga's exit announcement came a day after Gensler revealed he would resign from the SEC chairmanship during the new president's inauguration on Jan. 20, 2025. His announcement triggered a rally in the crypto market, sending Bitcoin to a new all-time high above $99,300 and pushing XRP to outperform BTC and all other top altcoins last week.
What Happens to the SEC Now?
With two Democratic leaders leaving the SEC before the Trump administration's takeover of the White House, the last one standing among Dems in the top leadership of the financial regulator is Caroline A. Crenshaw.
Crenshaw also voted against spot BTC ETFs. "These Commission actions are unsound and ahistorical. And worse, they put us on a wayward path that could further sacrifice investor protection," she said after the funds were approved. Republican Commissioners Hester M. Peirce and Mark T. Uyeda voted in favor of the funds alongside Gensler.
With Peirce, Uyeda, and Crenshaw being the only Commissioners to remain throughout the Trump takeover, the GOP Commissioners still need to get Crenshaw's backing if they want to advance regulations since at least three Commissioners need to vote for a pending rule.
Trump has yet to announce his nominations to replace Gensler and Lizárraga. But so far, he has nominated pro-crypto figures for the Commerce and Treasury Secretary roles.
Sen. Warren's Anti-Crypto Army is Falling Apart?
The successive exit announcements from Gensler and Lizárraga come as the United States prepares to welcome what could be the most "pro-crypto Congress," in addition to Trump having been converted into believing in Bitcoin's potential and supporting advancements in the broader crypto sector.
Democratic Sen. Elizabeth Warren has confirmed she is establishing an "anti-crypto army" which she said will protect investors. She has been re-elected but as per Stand With Crypto, 20 senators elected this year are pro-crypto versus 12 who are against the innovation.
Republicans have flipped the Senate and in the SEC, two out of the three who will remain until Trump's White House re-entry are Republicans. It remains to be seen how Warren will re-group as her army members start walking out of the war.
