The US Securities and Exchange Commission has confirmed the looming departure of its Chair Gary Gensler, set for January 20, 2025, interestingly coinciding with President-elect Donald Trump’s inauguration.
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, was marred 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.
Commenting about his departure, Gensler said: “I thank
President Biden for entrusting me with this incredible responsibility. The SEC
has met our mission and enforced the law without fear or favor.
“I’ve greatly enjoyed working with my fellow
Commissioners, Allison Herren Lee, Elad Roisman, Hester Peirce, Caroline
Crenshaw, Mark Uyeda, and Jaime Lizárraga. I also thank Congress, my colleagues
across the US government, and fellow regulators around the world.”
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.
Gensler’s Legacy
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.
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.
This article was written by Jared Kirui at www.financemagnates.com.
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