(qlmbusinessnews.com Mon. 25th Nov, 2024) London, UK —
Trump Era Begins: Gary Gensler Exits SEC Amid Crypto Controversies
Gary Gensler, head of the US Securities and Exchange Commission (SEC), has announced he will resign from his role on 20 January, coinciding with President-elect Donald Trump’s inauguration. The decision marks the end of a tenure characterised by rigorous enforcement actions, particularly within the cryptocurrency industry.
Confirming the news on social media platform X, Mr Gensler expressed gratitude for his time in the role:
“I thank President Biden for entrusting me with this incredible responsibility. The SEC has met our mission and enforced the law without fear or favour,” he wrote.
Mr Gensler, who became SEC chairman in 2021, was initially appointed for a term lasting until 2026. However, it is customary for leaders of federal agencies to step down when a new administration takes office.
Crypto Regulation at the Heart of the Divide
The departure comes against a backdrop of tensions between the Biden administration’s SEC and President-elect Trump, who criticised Gensler’s aggressive stance on cryptocurrencies. Trump previously promised to remove him on “day one” of his presidency.
Under Gensler’s leadership, the S E C pursued 46 enforcement actions against crypto firms in 2023 alone, including high-profile cases that led to the imprisonment of FTX’s Sam Bankman-Fried and Binance’s Changpeng Zhao. Gensler labelled the crypto sector “rife with fraud, hucksters, and grifters,” a view that has been met with fierce opposition from industry advocates.
Trump’s pro-crypto stance contrasts sharply with Gensler’s approach. The president-elect has pledged to make the US “the crypto capital of the planet,” even launching his family’s cryptocurrency venture, World Liberty Financial, during his campaign.
Investors have responded to Trump’s election victory with optimism, pushing Bitcoin’s value to a record high of $98,000 (£77,955). Many anticipate a lighter regulatory touch under a Republican-led S E C.
Reforms Beyond Cryptocurrency.
While much attention has focused on cryptocurrency, Gensler also spearheaded reforms in financial markets. These include reducing settlement times for share transactions and implementing rules to make large investment funds more resilient. However, efforts to mandate climate risk disclosures faced delays amid legal challenges.
As Gensler steps down, the S E C's future direction remains uncertain. Reports suggest that Trump may appoint a presidential adviser dedicated to the crypto industry, reflecting his administration’s priorities.
In a sign of broader tensions, the SEC has also clashed with Trump ally Elon Musk over potential fraud related to his acquisition of X (formerly Twitter). Musk, who has accused the S E C of harassment, is set to lead Trump’s new “Department of Government Efficiency.”
For the cryptocurrency community, Gensler’s departure represents a fresh start. Kristin Smith, CEO of the Blockchain Association, stated:
“All he did was come after the industry with litigation… we’re happy to get him out of the way.”
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