Major Changes at SEC Ahead of Trump’s Inauguration as Gensler Steps Down

U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler is set to resign on January 20, coinciding with the inauguration of President-elect Donald Trump, signaling significant leadership changes within the agency.

According to CoinTelegraph on January 18, SEC Commissioner Jaime Lizárraga stepped down on January 17, marking the beginning of a broader reorganization under the incoming administration. Lizárraga, who has served at the SEC since 2022, will be followed by Gensler’s departure on Trump’s inauguration day. These resignations highlight the transitional phase the SEC is undergoing under the new administration.

SEC Leadership Transition

Following Gensler’s resignation, the SEC will consist of three commissioners: Hester Peirce, Caroline Crenshaw, and Mark Uyeda. Although Crenshaw’s term expired in June 2024, she is expected to remain in her role until Trump nominates a replacement and the Senate confirms the appointment, which could extend her tenure through late 2025.

During his campaign, Trump criticized Gensler’s handling of the cryptocurrency industry and pledged to remove him. Gensler later announced his resignation voluntarily, and Trump has indicated plans to nominate former SEC Commissioner Paul Atkins as his replacement, pending Senate approval.

Internal Reshuffling and Broader Implications

The SEC is undergoing extensive internal restructuring. Amanda Fischer, SEC Chief of Staff, also announced her resignation on January 17. Simultaneously, the Associated Press reported that IRS Commissioner Daniel Werfel would step down on January 20, underscoring the administrative changes across federal agencies.

Uncertainty remains regarding how the SEC will handle ongoing cryptocurrency-related lawsuits initiated under Gensler. The agency is currently involved in legal battles with Ripple Labs, Coinbase, and Binance. Reuters speculated that the Trump administration might freeze civil lawsuits not involving fraud. The potential impact of these changes on appeals like Coinbase’s or rulings like Ripple’s remains unclear.

Trump’s Crypto-Friendly Stance

Trump’s administration has expressed support for the cryptocurrency industry, creating expectations of regulatory reforms that could be more favorable to crypto firms. The SEC’s upcoming leadership and policy direction will be closely monitored, as it could shape the future of cryptocurrency regulation in the U.S.