SEC chair Gary Gensler will step down
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Gary Gensler will step down as chair of the U.S. Securities & Exchange Commission at noon on Inauguration Day, the agency announced on Thursday.
Why it matters: Gensler has had an aggressive tenure, marked by controversial rulemaking and a combative approach with the cryptocurrency industry.
What they're saying: "The staff and the Commission are deeply mission-driven, focused on protecting investors, facilitating capital formation, and ensuring that the markets work for investors and issuers alike," Gensler said in a statement.
- "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."
In the weeds: The SEC noted his work to lower risk in the Treasury markets, market efficiency in equity markets, and trading by corporate insiders.
Yes, but: His tenure also included some noteworthy legal losses, perhaps most notably on spot bitcoin ETFs. The agency had resisted launching exchange traded products that represented actual bitcoin held in custody.
- However, once such products launched, they became the most successful new category of ETFs in history.
Zoom out: Gensler became the mascot of what was seen as White House hostility toward crypto, which galvanized the industry into putting tens of millions of dollars into federal elections.
- Shortly before Election Day, Gensler was sanguine about his prospects to continue on, in an interview with Axios.
- Gensler's announcement today has precedent. It has been traditional for SEC chairs to resign the commission if the administration changes in the middle of their term.
The bottom line: Cryptocurrency is the last topic the agency cited in today's release about the end of his tenure, but that face-off will be what his tenure will be remembered for.
