Cryptocurrency critic Gary Gensler to leave SEC: who will replace him?

The U.S. Securities and Exchange Commission (SEC) has officially announced that its 33rd chair, Gary Gensler, will step down on January 20, 2025. Gensler took the helm of the SEC on April 17, 2021, following the GameStop incident, and implemented significant reforms aimed at enhancing the efficiency, resilience, and integrity of U.S. capital markets.

Gary Gensler's Achievements

1. Reforms in the Treasury bond market. The SEC adopted rules to strengthen central clearing, reduce risks, and enhance efficiency in the $28 trillion bond market.
2. Stock market updates. Significant changes have been implemented for the first time in 20 years, including a reduction of the settlement cycle to one day and increased transparency of transactions.
3. Strengthening the resilience of the financial system. Changes were introduced in the reporting of large hedge funds and private equity funds, improving data transparency and quality.
4. Corporate governance. The SEC improved rules on executive compensation disclosures, shareholder voting, and timely reporting of over 5% ownership stakes in companies.
5. Transparency and disclosure. The SEC established rules to provide investors with information on cyber and climate risks, as well as streamline disclosures when companies go public.

Who Will Replace Gensler?

He was known as a critic and opponent of cryptocurrencies. With the rise of crypto-friendly Donald Trump and his team, the upcoming SEC chair is likely to be pro-crypto as well. Potential candidates include:

• Hester Peirce, the current SEC commissioner known for her favorable stance toward cryptocurrencies.
• Mark Uyeda, an SEC commissioner who openly advocates for balanced regulation of digital assets.
• Former SEC commissioner Dan Gallagher has stated that he is not interested in the position.

The leadership change at the SEC could represent a turning point for financial regulation in the U.S., particularly in the cryptocurrency sector. Amid these developments, the price of Bitcoin is approaching the $100,000 mark.