Gensler Officially Announces SEC Resignation, Crypto Rejoices

It's happened. It's actually happened. Gary Gensler has officially announced his resignation.

Aligning with the inauguration of President-elect Donald Trump, Gensler will step down as US Securities and Exchange Commission (SEC) Chair on 20 January 2025.

Making the announcement on X, Gensler said "It has been an honor of a lifetime to serve w/ them on behalf of everyday Americans & ensure that our capital mkts remain the best in the world."

He also praised President Joe Biden for "entrusting" him with the "incredible responsibility" and that the SEC has met their "mission" and "enforced the law w/o fear or favor.'"

Gensler's term, which began in 2021, was set to run until 2026 but with Trump pledging to fire Gensler on "day one," the SEC Chair's days began ticking as soon as the US voted Trump in.

Under Gensler’s term, the SEC intensified enforcement in the crypto sector, resulting in record fines and high-profile cases, including the imprisonment of FTX’s Sam Bankman-Fried and Binance’s Changpeng Zhao

Gensler described the crypto industry as being “rife with fraud,” a stark contrast to Trump’s crypto-friendly approach.

The SEC has yet to declare who will take on Gensler's role but a handful of names have been circulating around the rumour mill.

Brian Brooks, a former Acting Comptroller of the Currency and current board member of the Hedera Foundation and Goody Guillén, a partner at the law firm BakerHostetler and co-lead of its blockchain practice, are two of the most exciting potentials.

Dan Gallagher, Paul Atkins, Mark Uyeda, Hester Peirce, and Chris Giancarlo have also been listed as potential Gensler replacements under Trump.

That said, Giancarlo recently declared himself out of the running. “I’ve made clear that I’ve already cleaned up earlier Gary Gensler mess [at the CFTC] and don’t want to have [to] do it again,” Giancarlo, AKA 'Crypto Dad', said on X.

Gensler's official resignation announcement has further fuelled crypto prices' upward trajectory.

XRP, rose another 10% over the past 24 hours, after already rising 86% throughout the week prior.

Meanwhile, at $98,588.56, Bitcoin is edging ever closer to the elusive $100,000 mark.

SEC Loses Crypto Case

Also coinciding with Gensler's resignation announcement is a federal court in Texas striking down on an SEC rule that expanded the definition of a "dealer."

Marking a significant win for the crypto industry, Judge Reed O'Connor ruled that the SEC overstepped by broadly redefining the term in a way that blurred the long-standing distinction between "traders" and "dealers" under the Exchange Act.

The ruling drew criticism from various industries beyond crypto, with opponents arguing it represented regulatory overreach. Crypto advocate, The Blockchain Association, brought the case alongside the Crypto Freedom Alliance of Texas,.

"The way I see this is that this is the beginning of the dominos falling," Joshua Ashley Klayman, the head of the digital assets practice at the law firm Linklaters, told Axios.