The US Securities and Exchange Commission (SEC) announced on Thursday that its Chair, Gary Gensler, will step down from his role on January 20, 2025, coinciding with the presidential inauguration.
Gensler, who began his tenure on April 17, 2021, has overseen a transformative period at the agency, marked by significant regulatory initiatives and high-profile enforcement actions.
During his time as the SEC’s 33rd Chair, Gensler championed a robust regulatory agenda aimed at enhancing the efficiency, resiliency, and transparency of US capital markets. Key achievements include:
- Treasury Market Reforms: Implemented measures to lower risk and promote central clearing in the $28 trillion Treasury market.
- Equity Market Updates: Modernized the $55 trillion equity market with rules to narrow trading spreads, reduce fees, and accelerate trade settlement to one day.
- Corporate Governance Enhancements: Introduced rules for executive compensation transparency and voting rights reforms, enabling shareholders to mix board candidates more easily during contested elections.
- Investor Protections: Strengthened disclosure requirements for cyber and climate risks and implemented stricter safeguards against data breaches affecting brokers and advisors.
- Accounting and Auditing Improvements: Expanded oversight of auditors for Chinese companies listed in the US and updated longstanding Public Company Accounting Oversight Board (PCAOB) standards.
“It has been an honor of a lifetime to serve with the SEC staff on behalf of everyday Americans and to ensure that our capital markets remain the best in the world,” Gensler stated.
Gensler prioritized holding market participants accountable for violations, leading to more than 2,700 enforcement actions that resulted in $21 billion in penalties and disgorgements. The SEC also returned $2.7 billion to harmed investors between 2021 and 2024.
The agency’s enforcement efforts extended to cryptocurrency markets, where it pursued cases involving fraud, registration violations, and investor protections. The SEC faced mixed results in high-profile crypto cases, including its legal challenges to bitcoin exchange-traded funds and enforcement actions against major digital asset platforms.
While Gensler’s tenure brought sweeping reforms, it was not without challenges. Critics, particularly from the cryptocurrency industry, accused the SEC of overreach. Legal defeats, such as the approval of spot bitcoin ETFs following court challenges, underscored the contentious nature of his regulatory approach.
Gensler’s departure allows the incoming administration to reshape the SEC. In addition to filling his position, President-elect Donald Trump may appoint replacements for two commissioners whose terms end in 2024 and 2025. These changes could significantly influence the agency’s direction, particularly concerning Wall Street and digital assets.
Gensler’s resignation aligns with a tradition for SEC chairs to step down during a presidential transition.
CNBC, Axios, and the US Securities and Exchange Commission contributed to this report.
