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Bitcoin rises after SEC chair says he is to step down when Trump is inaugurated | Bitcoin rises after SEC chair says he is to step down when Trump is inaugurated |
(about 11 hours later) | |
Gary Gensler, a critic of the crypto industry, will leave the US financial regulator on 20 January | |
Cryptocurrencies have risen sharply after one of the industry’s biggest critics, Gary Gensler, said he would stand down as the head of the US financial regulator when president-elect Donald Trump was inaugurated in January. | Cryptocurrencies have risen sharply after one of the industry’s biggest critics, Gary Gensler, said he would stand down as the head of the US financial regulator when president-elect Donald Trump was inaugurated in January. |
In a post on X, Gensler confirmed he would resign from the US Securities and Exchange Commission (SEC) on 20 January. | In a post on X, Gensler confirmed he would resign from the US Securities and Exchange Commission (SEC) on 20 January. |
Trump had previously said he intended to fire Gensler on “day one” of his presidency after the chair of the SEC took legal action against cryptocurrency trading and platforms. | Trump had previously said he intended to fire Gensler on “day one” of his presidency after the chair of the SEC took legal action against cryptocurrency trading and platforms. |
“I thank President Biden for entrusting me with this incredible responsibility,” Gensler wrote in the post on X. | “I thank President Biden for entrusting me with this incredible responsibility,” Gensler wrote in the post on X. |
Gensler was appointed chair of the SEC in 2021 and immediately called on Congress to give him more powers to regulate the “wild west” crypto-sector, saying that it was “rife with fraud, scams and abuse”. | Gensler was appointed chair of the SEC in 2021 and immediately called on Congress to give him more powers to regulate the “wild west” crypto-sector, saying that it was “rife with fraud, scams and abuse”. |
Bitcoin extended its recent rally on Friday morning, hitting $99,500 (£79,463) for the first time. Ether has risen more than 7% in the last 24 hours, while the “meme coin” doge rose 2%. | Bitcoin extended its recent rally on Friday morning, hitting $99,500 (£79,463) for the first time. Ether has risen more than 7% in the last 24 hours, while the “meme coin” doge rose 2%. |
According to the digital currency news site CoinDesk, the total market capitalisation of crypto coins is now a record $3.4tn, having added 4.5% in the past 24 hours. | According to the digital currency news site CoinDesk, the total market capitalisation of crypto coins is now a record $3.4tn, having added 4.5% in the past 24 hours. |
Officially, Gensler’s five-year term at the SEC was meant to run until 2026, however it has become common practice for the chair to leave when the presidency changes. | Officially, Gensler’s five-year term at the SEC was meant to run until 2026, however it has become common practice for the chair to leave when the presidency changes. |
Under Gensler, the SEC pushed through rules seeking to bring more transparency to markets and improve corporate disclosure. | Under Gensler, the SEC pushed through rules seeking to bring more transparency to markets and improve corporate disclosure. |
However, he had a number of legal defeats in his attempt to tighten regulation. | However, he had a number of legal defeats in his attempt to tighten regulation. |
On the day he announced his resignation, a federal court in Texas threw out the SEC’s new rules for the $27tn US Treasury market, finding that the regulator had exceeded its authority. | On the day he announced his resignation, a federal court in Texas threw out the SEC’s new rules for the $27tn US Treasury market, finding that the regulator had exceeded its authority. |
“The SEC has met our mission and enforced the law without fear or favor,” Gensler said in his X post on Thursday. | “The SEC has met our mission and enforced the law without fear or favor,” Gensler said in his X post on Thursday. |
Trump holds more pro-crypto views and the value of cryptocurrencies have been rising since he won the US election. | Trump holds more pro-crypto views and the value of cryptocurrencies have been rising since he won the US election. |
Crypto firms have donated at least $119m to congressional candidates they think will pass legislation that is more favourable to their aims. | Crypto firms have donated at least $119m to congressional candidates they think will pass legislation that is more favourable to their aims. |
In his time as SEC chair, Gensler’s regulatory efforts also included new standards for climate disclosures and cybersecurity and market changes. | In his time as SEC chair, Gensler’s regulatory efforts also included new standards for climate disclosures and cybersecurity and market changes. |
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However, a US appeals court threw out rules that would have forced private equity and hedge funds to increase transparency. | However, a US appeals court threw out rules that would have forced private equity and hedge funds to increase transparency. |
A series of lawsuits also prompted the SEC to halt a measure that for the first time would have required companies to disclose their climate risks. | A series of lawsuits also prompted the SEC to halt a measure that for the first time would have required companies to disclose their climate risks. |
Trump will nominate Gensler’s successor and is expected to appoint someone who will seek to deregulate and potentially discard rules proposed by the outgoing SEC chair but not yet finalised. | Trump will nominate Gensler’s successor and is expected to appoint someone who will seek to deregulate and potentially discard rules proposed by the outgoing SEC chair but not yet finalised. |
In remarks made before Gensler’s resignation announcement, Ken Griffin, the billionaire founder of the hedge fund Citadel, said: “Over the last four years, there were a number of rule changes proposed where, to be blunt, it’s like: ‘What problem are we trying to solve?’” | In remarks made before Gensler’s resignation announcement, Ken Griffin, the billionaire founder of the hedge fund Citadel, said: “Over the last four years, there were a number of rule changes proposed where, to be blunt, it’s like: ‘What problem are we trying to solve?’” |
“Much of Gensler’s agenda will not survive, in my opinion, the next four years. Between the courts and a new SEC, we’re going to see a rollback of the regulatory onslaught,” Griffin told the Economic Club of New York on Thursday. | “Much of Gensler’s agenda will not survive, in my opinion, the next four years. Between the courts and a new SEC, we’re going to see a rollback of the regulatory onslaught,” Griffin told the Economic Club of New York on Thursday. |
The Trump transition team is reportedly considering Teresa Goody Guillén, a securities lawyer, to lead the SEC, according to CoinDesk. | The Trump transition team is reportedly considering Teresa Goody Guillén, a securities lawyer, to lead the SEC, according to CoinDesk. |
She is the co-leader of the blockchain team at the law firm BakerHostetler, and has defended crypto firms and individuals facing investigations and enforcement actions brought by the SEC. | She is the co-leader of the blockchain team at the law firm BakerHostetler, and has defended crypto firms and individuals facing investigations and enforcement actions brought by the SEC. |
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