The US Securities and Exchange Commission has confirmed the looming departure of its Chair Gary Gensler, set for January 20, 2025, interestingly coinciding with the swearing-in of President-elect Donald Trump.

On his campaign trail, Trump promised the crypto community to fire Gensler, who was known for his stringent stance on the sector’s regulations. Gensler’s tenure, which began in April 2021, coincided with challenges like the GameStop saga and volatile crypto markets.

US Capital markets

According to the SEC, Gensler spearheaded reforms to make US capital markets more efficient, transparent, and fair. From high-impact enforcement actions to sweeping rule changes, his leadership has left a lasting imprint on the financial world.

During his time at the SEC, Gensler prioritized structural improvements in the $28 trillion Treasury market and the $55 trillion equity market. For Treasury markets, the SEC adopted rules to promote central clearing and reduce risk, reinforcing market stability.

In equity markets, the agency implemented the first major updates in nearly two decades, such as shortening the settlement cycle to one day and improving transparency in broker execution quality.

Gensler's SEC reportedly focused on bolstering market resiliency. Amendments to Form PF, which requires reporting from private fund advisers, increased transparency and preparedness for market stress.

The watchdog also lauded the 67-year-old for enhancing corporate governance during his tenure. Rules were updated to ensure executives face stricter accountability, including clawbacks for erroneously reported compensation and more transparent disclosure of pay versus performance metrics.

Disclosure Challenges

During Gensler’s time, the SEC reportedly pursued over 2,700 enforcement actions, resulting in $21 billion in penalties and returning $2.7 billion to harmed investors. The agency also ramped up its scrutiny of crypto markets, filing cases against fraudulent intermediaries and ensuring compliance in this rapidly evolving space.

Gensler’s leadership extended beyond rulemaking. Under his guidance, the Public Company Accounting Oversight Board updated long-outdated standards and strengthened oversight of Chinese audit firms, a milestone in global regulatory cooperation.