One SEC Commissioner Down Before Trump’s Term — Gary Gensler Is Next

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Exterior view of the SEC building, symbolizing leadership changes as Gary Gensler and Jaime Lizárraga step down ahead of Trump’s term.
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Leadership Hires, Departures at the SEC as Transition Gets Underway

The Securities and Exchange Commission is seeing some major changes with the impending departures of Jaime Lizárraga and Gary Gensler. Lizárraga, who joined the commission in 2022, will depart on Jan. 17, less than a week before President-elect Donald Trump is sworn in. Current SEC Chairman Gensler announced his resignation, effective Jan. 20, in coordination with the new administration taking over power. The above-mentioned separations result in some leadership voids in the commission’s hierarchy during an important transitionary period.

Remaining Leadership Within the SEC

With Gensler’s exit, the commission will have only three commissioners, including Hester Peirce, Caroline Crenshaw, and Mark Uyeda. Peirce, referred to as “Crypto Mom” for her friendlier approach to crypto, might prove to be the most critical driver in determining the trajectory of the SEC under Trump. Though her term officially expired in June 2024, Crenshaw could continue in the role until the end of 2025 unless a replacement proposed by Trump is ratified by the Senate.

Trump’s Promise to Overhaul the SEC

Although Donald Trump’s campaign had promised to oust Gensler, the SEC chair said he would voluntarily resign after the election result was known. Trump reportedly favors former SEC commissioner Paul Atkins for the chairmanship. Atkins-a longtime advocate for lighter regulation-would need to be nominated and confirmed by the Senate before taking office.

What this may mean to some on-going SEC Cases

During Gensler’s tenure, the Commission has pursued aggressive enforcement actions against crypto firms, including high-profile cases against Coinbase, Binance, and Ripple Labs. Reports indicate that the incoming Trump administration could halt enforcement cases that do not involve allegations of fraud-a development that would dramatically shift the SEC’s approach. Important questions would remain about how such policies would impact ongoing litigation and decisions from the appellate courts.

Broader Government Changes

But the SEC isn’t alone in experiencing departures: It lost its chief of staff, Amanda Fischer, who announced her departure Jan. 17. IRS Commissioner Daniel Werfel is resigning, effective on inauguration day as well. Moves within various arms are seen in anticipation of broad realignment under a new Trump Administration – a transition, so to say, wherein the chief executives take office anew with the emphasis expected on cryptocurrency under Trump’s helm.

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During this period of transition for the SEC, the agency’s focus and leadership will go a long way in shaping the new administration’s view of the U.S. financial landscape.

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