On November 21, Gary Gensler, Chair of the U.S. Securities and Exchange Commission (SEC), announced his resignation, effective January 20, 2025. 

The timing coincides with the inauguration of President-elect Donald Trump, setting the stage for a possible shift in the SEC's regulatory direction.

"The Securities and Exchange Commission is a remarkable agency," said Gensler in his resignation announcement on X. "It has been an honor of a lifetime to serve with them on behalf of everyday Americans and ensure that our capital markets remain the best in the world."

Gensler’s tenure, which began in 2021, has been marked by "aggressive" enforcement actions and approach to financial regulation, according to a past report from Federal Newswire. While his supporters praised his focus on protecting investors, his critics argue that his leadership fostered a climate of regulatory overreach, particularly targeting the cryptocurrency industry.

Gensler's departure comes as President-elect Trump signals intentions to usher in a more business-friendly approach at the SEC. Industry observers anticipate a rollback of some of Gensler’s stricter policies, particularly in areas like cryptocurrency regulation and market compliance, as the new administration seeks to ease regulatory pressures.

The cryptocurrency industry has spoken against the SEC’s approach, citing mounting fines and increased regulatory challenges as barriers to innovation. 

A report from Morgan Lewis revealed that the SEC filed 86 enforcement actions against public companies in fiscal year 2023, a 13% increase from the prior year, accounting for 17% of all enforcement actions.

According to Social Capital Markets, SEC fines increased from $150.26 million in 2023 to $4.68 billion in 2024.

Gary Gensler, born October 18, 1957, in Baltimore, Maryland, is an American government official and former investment banker who has served as the chair of the U.S. Securities and Exchange Commission (SEC) since April 17, 2021.