Securities and Exchange Commission Chairman Gary Gensler will resign on January 20 when President-elect Donald Trump's administration takes office, the agency announced Thursday, beginning an ambitious term that has clashed with Wall Street and the crypto industry. It put an end to it.
“I thank President Biden for entrusting me with this great responsibility. The SEC has fulfilled our mandate and enforced the law without fear or favor,” said Gensler, a 2021 nominee by Democratic President Joe Biden. he said in a statement.
Known for his fiery style, Mr. Gensler has led an ambitious agenda to increase transparency, reduce systemic risk and eradicate conflicts of interest on Wall Street, completing dozens of new rules and Some of them are being challenged in court.
Among his key accomplishments are changes to make U.S. markets more resilient and efficient, including faster trade settlements and an overhaul of the $28 trillion U.S. Treasury market, as well as improved information for investors. It includes a number of rules that strengthen disclosure and corporate governance.
The Baltimore native also successfully enforced a Congress-mandated rule imposing SEC oversight on auditors of Chinese companies listed in the U.S., which lawmakers say puts U.S. investors at risk. It ended a 10-year conflict with China, which claims that
On the enforcement front, Gensler's SEC breaks new ground with a multi-year effort focused on Wall Street's use of texts, WhatsApp and other unauthorized channels to discuss business. and imposed fines of more than $2 billion on dozens of companies, including JPMorgan and Goldman. saxophone.
He also sued the crypto industry, including Coinbase, Kraken, and Binance, alleging that the companies violated SEC rules by not registering with the agency, which the companies deny and take to court. He claimed that he was fighting.
When it comes to virtual currencies, courts have largely supported Gensler's position.
But his far-reaching policies and uncompromising stance provoked fierce opposition not only on Wall Street but also from Republicans in Congress and even some Democrats.
Groups including the U.S. Chamber of Commerce and the Managed Funds Association have filed lawsuits in courts including the conservative-leaning U.S. Court of Appeals for the Fifth Circuit, alleging at least eight rules are unreasonable, harmful, or beyond the SEC's authority. Eight rules were overturned.
Jill Fish, a law professor at the University of Pennsylvania who specializes in securities regulation, said Gensler will leave with a mixed legacy.
“I think there are obviously some wins, but I would say he came in with a pretty aggressive rule-making agenda, and most of it was not tenable or likely to be tenable.”
Trump administration transition
In a major blow to the agency, the Fifth Circuit ruled in June that the SEC lacked the authority to oversee the $27 trillion private funds industry. The loss and other legal issues have delayed the agency's rulemaking this year and could cripple the agency's operations in the long run, Reuters reported.
Shortly before Gensler's announcement Thursday, a federal judge in Texas rejected the SEC's review of its financial dealer rules adopted earlier this year.
Some critics also argue that Gensler's crypto movement is ill-conceived and has harmed the U.S. economy by stifling innovation and pushing crypto companies overseas; rejects criticism. In a speech this month, he argued that history has shown that “strong securities regulation creates confidence in markets and fosters innovation.”
President Trump has not announced who will replace Gensler, but it is widely expected that he will appoint either current Republican SEC commissioner Hester Peirce or Mark Ueda as acting administrator.
Reuters previously reported that President Trump's transition team was considering hiring former SEC officials for permanent jobs.
Mr. Gensler's successor is expected to immediately end crypto enforcement, overhaul many of Mr. Gensler's rules, reverse enforcement actions through the courts, and pursue rule changes focused on promoting capital formation. There is.
