Donald Trump’s promise of a US SEC without Gary Gensler could come to fruition sooner than expected, amid lawsuits and talk of resignation.
Wall Street’s top cop has been accused of “unconstitutional overreach” and “unjust persecution” of the $3 trillion cryptocurrency industry, according to a lawsuit signed by 18 Republican attorneys general.
The lawsuit alleges that the U.S. Securities and Exchange Commission and its commissioners, led by Chairman Gary Gensler, exceeded their jurisdiction and disregarded the state’s economic autonomy.
The GOP AG and state litigation has added to the existing scrutiny of Gensler’s SEC career. Top lawmakers launched an investigation into the SEC’s hiring practices amid suspicions of politically biased hiring, prompting the investigation.
Several members of Congress called for his resignation, and Donald Trump promised the digital assets industry that he would fire Gensler.
Is Gary Gensler retiring?
Social media is rife with speculation that Gensler may be about to step down as SEC chairman. His comments in a November 14 memo, calling his time at the SEC a “great honor” and praising his colleagues for their dedication, fueled rumors of a possible impending retirement.
The SEC is a remarkable agency. The staff and Commission are deeply mission-driven and focused on protecting investors, maintaining fair, orderly, and efficient markets, and facilitating capital formation.
SEC Chairman Gary Gensler
He added that it has been a privilege to serve at the SEC “doing the people’s work and ensuring our capital markets remain the best in the world.”
A tough stance on crypto regulation has marked Gensler’s tenure at the securities regulator. Blockchain industry players are increasingly anticipating changes in leadership and policy enforcement from the SEC after years of battling Gensler’s regulatory approach.
The SEC has pending lawsuits against companies like Coinbase and Ripple (XRP). As such, Gensler’s potential departure has become a focal point for speculation about how regulatory policies might evolve under new leadership.
