SEC Chair Gary Gensler Steps Down as Crypto Policy Faces a New Chapter

• Gary Gensler will step down as SEC chair.
• The crypto community and several policymakers celebrated Gensler’s departure.
• His tenure, marked by aggressive enforcement actions, led to costly lawsuits for crypto companies.

Gary Gensler, the chairman of the U.S. Securities and Exchange Commission (SEC), will resign on Jan. 20 —the day President-elect Donald Trump takes office.

His departure marks the end of a nearly four-year tenure at the agency.

Crypto Community Celebrates Gensler’s Exit

Gensler’s announcement has been met with widespread relief in the crypto industry, where his leadership was often seen as a threat to innovation.

Under Gensler, the SEC pursued an aggressive enforcement strategy that led to numerous lawsuits and significant costs for crypto companies.

Several key figures in the crypto space voiced their satisfaction with Gensler’s exit. Senator Cynthia Lummis, a staunch Bitcoin advocate, called his departure “welcome news” for the digital asset industry.

She expressed hope that the next SEC chair would respect the law and allow for financial innovation to thrive.

Paul Grewal, the chief legal officer at Coinbase, was more reserved in his reaction . “If I don’t have anything nice to say, I won’t say anything at all,” Grewal quipped, referencing advice he received from his mother.

Brad Garlinghouse, CEO of Ripple, also celebrated the news , calling Gensler’s exit a reason to give thanks this Thanksgiving.

Meanwhile, Massachusetts Republican primary winner and Pro-XRP attorney John Deaton had little to say other than offering his finger in response .

A Divisive Legacy

When Gensler was appointed SEC chair, many in the crypto community viewed him as a potential ally due to his background as a professor of blockchain and digital assets.

Before his appointment, Gensler had even advocated for Bitcoin and other cryptocurrencies. However, once in office, his approach shifted dramatically.

Under Gensler’s leadership, the SEC took a hardline stance on crypto regulation.

The agency classified nearly every crypto token as a security, except for Bitcoin. Despite calls for clarity from both the industry and lawmakers, the SEC failed to provide clear regulatory guidelines, leading to accusations of overreach and confusion.

The SEC pursued dozens of lawsuits against major crypto firms, including Coinbase, Kraken, Binance, and Ripple, accusing them of violating federal law by offering unregistered securities.

Gensler’s Exit and the Road Ahead

Gensler’s tenure was a key talking point this election. His departure under the Trump administration will usher in a new era at the SEC.

With the crypto community breathing a sigh of relief, all eyes are now on the SEC’s future leadership and whether the next chair will take a more balanced approach to regulating digital assets.