Key Takeaways
- Gary Gensler officially resigned as US SEC Chairman with President Donald Trump’s inauguration paving the way for Trump’s nominee, Paul Atkins, to ascend to Office if the Senate approves him.
- Gensler’s Tenure as SEC Chair constituted strict oversight of the digital asset industry, with over 100 cases against industry players and members paying fines of up to $429 million in litigation.
- The crypto industry sees Paul Atkins as a friendlier pick owing to his pro-crypto stances during his tenure as SEC commissioner, during which time he advocated for best practices in the industry.
The United States Securities and Exchange Commission (SEC) Chair, Gary Gensler, formally resigned on Monday, January 20, 2025, the day Donald J. Trump was sworn in as the 47th President. The agency announced Gensler’s resignation via an official statement.
Trump Had Promised to Fire Him on Day One in Office
The former SEC chair announced he would resign last November to pave the way for the new president, Paul Atkins, to become SEC chair, pending confirmation by the Senate. The crypto industry is optimistic that Atkins will introduce a pro-business approach to the agency, especially in matters relating to the crypto industry. In the resignation letter, the other SEC commissioners stated:
“Today is Chair Gensler’s final day at the Securities & Exchange Commission […] although as Commissioners we approached policy issues from different perspectives; there was always dignity in our differences. Chair Gensler has been committed to bipartisan engagement and respectful exchange of ideas, which has helped facilitate our service to the American public. For that, we are deeply grateful.”
While Gary Gensler’s term as SEC Chair officially runs to 2026, he announced his resignation as the Trump 2.0 administration came into power like leaders in several other agencies. Other SEC officials who have so far stepped down include Commissioner Jaime Lizarraga and the agency’s chief economist, policy director, and chief of staff. During his presidential campaign trail, Trump indicated that he would fire Gary Gensler on his first day in Office.
Crypto Community Celebrates Gensler’s Departure
The early departure of Gary Gensler will be a sigh of relief for the crypto community, which felt persecuted under the official thanks to the agency’s strict oversight of the industry. The SEC took legal action against many leading crypto industry players, including Binance, Coinbase, and Ripple. The Blockchain Association, an umbrella body representing over 100 crypto industry players, observed that SEC under Gensler brought over 100 against the industry, costing the association’s membership over $429 million in fees related to the litigation.
Last November, Gemini co-founder Mark Cuban said of Gensler’s looming resignation:
“You are a disgrace who forever tarnished the reputation of the SEC. That’s your legacy.”
Gemini is among the companies that settled with the SEC in 2024. Reacting to the news of the resignation, billionaire entrepreneur Mark Cuban shared a link to the song “Hallelujah” on his social media X platform.
Conclusion
As the White House awaits the Senate’s approval or otherwise of the SEC Chair nominee Paul Atkins, Republican Commissioner Mark Uyeda has been appointed as interim SEC chair following the resignation of Gary Gensler. Uyeda and Commissioner Hester Pierce are expected to set the reforms ball rolling, mainly by clarifying crypto asset securities classifications and reviewing enforcement cases. Even as he takes over as acting chair, the crypto community has criticized Uyeda for his aggressive attitude and enforcement actions under the leadership of Gary Gensler.
