Gary Gensler, chair of the U.S. Securities and Exchange Commission (SEC), has announced his resignation, effective Jan. 20, 2025, coinciding with President-elect Donald Trump’s inauguration. Gensler, who has been at the helm since April 2021, will leave the SEC entirely. His tenure has been marked by aggressive regulatory actions, particularly in cryptocurrency.

Under Gensler, the SEC launched over 100 enforcement actions against crypto companies, including prominent cases against Binance, Coinbase and Kraken. He consistently argued that most cryptocurrencies fall under the definition of securities and should be regulated as such. Critics, however, accused him of using outdated laws and failing to create a clear regulatory framework, leaving the industry uncertain.

Gensler also focused on reforms beyond crypto, such as reducing the stock trade settlement cycle to one day, updating equity market rules for the first time in two decades, and enhancing corporate governance and climate disclosure requirements. He reinforced the Public Company Accounting Oversight Board (PCAOB) and negotiated agreements with Chinese regulators for audit inspections of U.S.-listed Chinese companies.

Trump’s incoming administration is expected to bring a sharp change in the SEC’s approach, particularly toward cryptocurrencies. The President-elect has pledged to make the U.S. a global hub for crypto innovation and is likely to appoint industry-friendly officials. Summer Mersinger, a CFTC commissioner, is reportedly a leading candidate to replace Gensler or take on a new role focused on cryptocurrency regulation.

Under Gensler, the SEC faced criticism for prioritizing crypto enforcement over other areas. Although cryptocurrency-related tips and complaints made up only 18% of total submissions to the SEC, the agency pursued these cases aggressively, while some argued that broader financial markets received insufficient attention.

Gensler’s exit has drawn mixed reactions. Crypto industry leaders, who have frequently criticized his enforcement-heavy approach, view his resignation as a positive development. Others, however, are concerned about the potential regulatory rollback under Trump’s administration and the implications for investor protections and market stability.

Reflecting on his time at the SEC, Gensler stated that it was “an honor of a lifetime” to serve and maintain the integrity of U.S. markets. As the SEC prepares for new leadership, speculation grows over the future of financial regulation and the direction the Trump administration will take in reshaping oversight of the cryptocurrency industry.