Washington, D.C. – U.S. Securities and Exchange Commission chair Gary Gensler announced his upcoming resignation on Thursday, to take effect on January 20, coinciding with President-elect Trump’s inauguration. Gensler’s departure will mark the conclusion of a tumultuous tenure as the top financial regulator in the country.
Since assuming office in April 2021, Gensler has been embroiled in conflicts with industry groups within Wall Street, spearheading an assertive agenda of rulemaking and enforcement actions that frequently put him at odds with the very companies his agency oversaw.
Appointed by President Joe Biden, Gensler’s decision to step down aligns with the tradition of agency heads resigning after the election of a president from the opposite party. Previously a banker at Goldman Sachs, Gensler evolved into a progressive reformer post the 2008 financial crisis, playing a key role in the enactment of the significant Dodd-Frank legislation.
Under Gensler’s leadership, the Securities and Exchange Commission took on a more public-facing role, with Gensler making numerous TV appearances and engaging in disputes with the crypto industry. His departure was succinctly framed in a social media post, where he expressed his gratitude for the opportunity to serve the American public and uphold the integrity of the country’s capital markets.
Established in the early 1930s, the SEC is responsible for overseeing securities markets like stocks and bonds, as well as safeguarding investors. Typically operating behind the scenes in a technical capacity, the agency veers away from the spotlight, collaborating with investment firms and banks to mitigate fraud and supervise processes like public offerings.
Gensler’s tenure veered from this tradition as he positioned himself as a prominent figure in the Democratic party, drawing on his past experiences as chair of the Commodity Futures Trading Commission and CFO of Hillary Clinton’s 2016 presidential campaign. Known for shedding his Goldman Sachs persona, he garnered support from progressives like Senator Elizabeth Warren through his commitment to financial reform under Dodd-Frank.
Throughout his term, Gensler advanced progressive measures such as requiring financial institutions to disclose climate-related information, despite facing fierce opposition from the industry. The agency also encountered legal challenges from various sectors, including the crypto industry, hedge funds, and private equity firms, regarding its regulatory stance.