The top US securities regulator, a skeptic towards cryptocurrency who was appointed by President Joe Biden, announced Thursday he will step down in January when Donald Trump takes office.
Gary Gensler, chair of the Securities and Exchange Commission (SEC), said he will resign on January 20, the same day Trump assumes the presidency. The move clears the way for the Republican president-elect to pick Gensler’s successor.
The news comes as bitcoin hit a fresh record of $98,473,64 on Thursday.
Gensler’s five-year term does not end until 2026, but agency chairs customarily step down when the party of presidential administration turns over.
Gensler took office in April 2021 shortly after the so-called “meme stock” frenzy in January 2021 prompted massive volatility in GameStop and a handful of other stocks.
A former mergers and acquisitions partner at Goldman Sachs, Gensler led rulemaking proposals intended to improve efficiency in capital markets.
But his future in Washington looked precarious in light of the SEC’s confrontational approach to cryptocurrency throughout the Biden years.
During the campaign, Trump drew heavy financial support from cryptocurrency backers, some of whom are also close to the president-elect’s close ally, Tesla and SpaceX CEO Elon Musk.
In the absence of clear regulations, Gensler took an aggressive stance toward digital currencies, treating them like traditional financial securities such as stocks and bonds.
The approach has prompted SEC lawsuits against major trading platforms including Binance, Coinbase, and Kraken, along with various smaller startups.
Leading legislation in Washington would shift oversight to the Commodities Futures Trading Commission, known for its lighter-touch approach to regulation.
Gensler thanked Biden and fellow commissioners, saying in a statement, “The SEC has met our mission and enforced the law without fear or favor.”
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