As Trump takes office, SEC bids farewell to outgoing Chair Gary Gensler

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The SEC on Monday issued a statement bidding farewell to SEC Chair Gary Gensler, who has led the agency since April 2021. Gensler’s exit comes as Donald Trump begins his second term in office.

“Although as Commissioners we approached policy issues from different perspectives, there was always dignity in our differences,” the statement read. “Chair Gensler has been committed to bipartisan engagement and a respectful exchange of ideas, which has helped facilitate our service to the American public.”

Gensler announced his resignation last November, paving the way for Trump appointee Paul Atkins to take over as SEC Chair pending Senate confirmation. Atkins is expected to bring a pro-business approach to the agency, particularly regarding crypto regulations.

Under Gensler’s leadership, the SEC brought 100 crypto-related enforcement actions, following the 80 cases initiated by former chair Jay Clayton during the initial coin offering boom of 2017-2018.

The outgoing chair adopted a ‘regulation by enforcement’ strategy, focusing on tighter corporate governance regulations and aggressive actions against crypto markets, which many argue stifled innovation and investor confidence.

Upon leaving, Gensler defended the SEC’s stringent crypto enforcement. He described the sector as “rife with bad actors” and predominantly driven by sentiment rather than fundamentals.

He maintained that most crypto assets qualify as securities, though he characterized Bitcoin as “a commodity” and likened it to gold.

The SEC is expected to transition to a Republican majority, with Commissioners Hester Peirce and Mark Uyeda preparing to begin reforms focused on clarifying crypto asset securities classifications and reviewing enforcement cases.

According to Reuters, the agency may pause or withdraw some non-fraud litigation.

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