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The US Securities and Exchange Commission (SEC) Chairman, Gary Gensler, officially announced his resignation effective 20 January 2025, coinciding with the inauguration of US President-elect Donald Trump. This decision marks the end of Gensler’s nearly four-year tenure since being sworn in on 17 April 2021 by President Joe Biden.
In his official statement on 22 November 2024, Gensler thanked the SEC team and President Biden for their support during his office. “It has been the great honor of my life to serve alongside the SEC team for everyday Americans and to ensure our capital markets remain the best in the world,” Gensler said.
Gensler’s decision to step down comes after Trump, in a campaign promise, committed to replacing the SEC leadership to support the neglected crypto community over the past few years. However, while the president can appoint the SEC Chairman, the position is independent and cannot be dismissed unilaterally.
Crypto Regulation in the Gary Gensler Era
Gensler was known for his firm approach to crypto regulation during his leadership. Some of the key achievements include:
- Massive legal actions: Targeted major crypto platforms like FTX and Binance, leading to heavy penalties for their founders.
- Harsh warnings against crypto: Gensler often portrayed the industry as risky, creating tension with market participants.
- Record legal actions: In 2024, the SEC recorded 46 legal actions against the crypto sector, a new record.
While considered successful in enforcing the law, this heavy-handed approach has been sharply criticized by the community, which feels it limits innovation and industry growth.
Crypto Assets Soar
The crypto community positively welcomed the news of Gensler’s resignation. During his tenure, the SEC implemented a tough approach towards the crypto industry with over 100 legal actions, including targeting major platforms such as FTX and Binance. Industry players hope that Gensler’s replacement will be more supportive of innovation.
The crypto market immediately responded to this news with significant gains. Bitcoin (BTC) printed a new high of US$98,600, an increase of 4% in the last 24 hours. Ether (ETH), the second largest asset, jumped more than 7% to US$3,324. Meanwhile, Solana (SOL) showed strong performance with an 8% increase to US$255, close to its record high.
Other assets, such as Cardano (ADA) and Avalanche (AVAX), also recorded surges of 10% and 7%, respectively, reflecting market optimism about the potential for friendlier regulations in the future.
XRP Leads Crypto Market Rally
XRP posted the most significant gains among all assets, rising 22% to US$1.36, its highest level since January 2018. In the past month, its value has surged 153%, solidifying its position as one of the best-performing crypto assets.
The XRP community is particularly celebrating Gensler’s resignation, given that Ripple Labs, the XRP issuing company, has been facing a lengthy lawsuit from the SEC since 2020. Ripple finally won this lawsuit in July 2023, when the court ruled that XRP is not a security.
Conclusion
Gary Gensler’s resignation and Donald Trump’s inauguration as US President create an opportunity for a new era of crypto regulation in the US. The expectation of friendlier regulation has the potential to boost the growth of the crypto market, as evidenced by the surge in prices of various major assets.
However, market participants should remain wary of the new policies, as regulatory flexibility can be a double-edged sword. This transformation presents great opportunities but also challenges for investors looking to make the most of market momentum.
With a new era on the horizon, the crypto community hopes that the SEC can become more inclusive without compromising capital market safety.