The US Securities and Exchange Commission has confirmed the looming departure of its Chair Gary Gensler, set for January 20, 2025, interestingly coinciding with President-elect Donald Trump's inauguration.
On his campaign trail, Trump promised the crypto community to fire Gensler, who was known for his stringent stance on the sector’s regulations. Gensler’s tenure, which began in April 2021, was marred by challenges such as the GameStop saga and volatile crypto markets.
US Capital markets
However, according to the SEC, Gensler spearheaded reforms to make US capital markets more efficient, transparent, and fair. From high-impact enforcement actions to sweeping rule changes, the regulator praised his leadership as having left a lasting imprint on the financial world.
On January 20, 2025 I will be stepping down as @SECGov Chair.A thread ????⬇️
— Gary Gensler (@GaryGensler) November 21, 2024
During his time at the SEC, Gensler prioritized structural improvements in the $28 trillion Treasury market and the $55 trillion equity market. For Treasury markets, the SEC adopted rules to promote central clearing and reduce risk, reinforcing market stability.
In equity markets, the agency implemented the first major updates in nearly two decades, such as shortening the settlement cycle to one day and improving transparency in broker execution quality. Commenting about his departure, Gensler said: “I thank President Biden for entrusting me with this incredible responsibility. The SEC has met our mission and enforced the law without fear or favor.
“I’ve greatly enjoyed working with my fellow Commissioners, Allison Herren Lee, Elad Roisman, Hester Peirce, Caroline Crenshaw, Mark Uyeda, and Jaime Lizárraga. I also thank Congress, my colleagues across the US government, and fellow regulators around the world.”
Gensler's SEC reportedly focused on bolstering market resiliency. Amendments to Form PF, which requires reporting from private fund advisers, increased transparency and preparedness for market stress, the agency said.
JUST IN: Crowd goes absolutely nuts after Donald Trump vows to fire SEC Chairman Gary Gensler during the Bitcoin Conference in Nashville, Tennessee.Trump was clearly taken aback at the crowd's reaction when he made the announcement."On day one, I will fire Gary Gensler and… pic.twitter.com/0CyOMaY6FY
— Collin Rugg (@CollinRugg) July 27, 2024
Gensler's Legacy
The watchdog also lauded the 67-year-old for enhancing corporate governance during his tenure. Rules were updated to ensure executives face stricter accountability, including clawbacks for erroneously reported compensation and more transparent disclosure of pay versus performance metrics.
During Gensler’s time, the SEC reportedly pursued over 2,700 enforcement actions, resulting in $21 billion in penalties and returning $2.7 billion to harmed investors. The agency also ramped up its scrutiny of crypto markets, filing cases against fraudulent intermediaries and ensuring compliancein this rapidly evolving space.
Gensler’s leadership extended beyond rulemaking. Under his guidance, the Public Company Accounting Oversight Board updated long-outdated standards and strengthened oversight of Chinese audit firms, a milestone in global regulatory cooperation.
This article was written by Jared Kirui at www.financemagnates.com.
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