Pro-Crypto Shift at SEC Begins as Anti-Crypto Commissioner Steps Down After Gensler Resigns

CN
5 hours ago

U.S. Securities and Exchange Commission (SEC) Commissioner Jaime Lizárraga has announced his intention to step down from the agency on Jan. 17, 2025. In a statement issued on Nov. 22, Lizárraga explained that his decision was driven by family priorities as his wife, Kelly, faces significant health challenges. He wrote:

Until my departure in January, I will remain fully engaged in the Commission’s ongoing work and activities. I don’t yet know what comes next, but I do know that it has been a great honor to serve as SEC Commissioner.

After 34 years in public service, he emphasized the need to focus on his family’s future while expressing hope for Kelly’s full recovery. He thanked President Joe Biden for his nomination and reflected on his time at the SEC as a profound honor.

Lizárraga praised SEC Chair Gary Gensler for exceptional leadership and commended his fellow commissioners for their collaborative spirit. Highlighting the agency’s crucial role in maintaining the integrity of U.S. capital markets, Lizárraga underscored the achievements accomplished under Gensler’s agenda.

Gensler has also announced his resignation effective Jan. 20, 2025, coinciding with President-elect Donald Trump’s inauguration. Gensler’s tenure was marked by a stringent regulatory approach toward the cryptocurrency industry, initiating enforcement actions against major exchanges such as Binance, Coinbase, and Kraken. His departure aligns with Trump’s campaign promise to remove Gensler and foster a more crypto-friendly regulatory environment.

The SEC has five commissioners, including the Chair. Two Commissioners, Hester M. Peirce and Mark T. Uyeda, are Republicans, while Caroline A. Crenshaw and Lizárraga are Democrats.

Lizárraga advocates for stronger regulation of the cryptocurrency market, citing its unregulated nature as a key driver of risks and challenges. After the collapse of crypto exchange FTX in November 2022, he aligned with Gensler’s view that most crypto tokens should be treated as securities. He argued that issues in the digital asset market often surpass those in traditional finance. In January, he voted against the SEC’s approval of spot bitcoin exchange-traded funds (ETFs). During a November 2022 keynote at Brooklyn Law School, Lizárraga voiced doubts about cryptocurrency’s ability to deliver financial inclusivity, stating it had yet to provide meaningful inclusivity or adequate investor protections.

Meanwhile, President-elect Donald Trump has embraced cryptocurrency, pledging to establish the U.S. as the “crypto capital of the planet” and proposing the creation of a national bitcoin reserve. He has also nominated a pro-crypto Treasury Secretary.

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