Gary Gensler confirms his resignation from the SEC with the arrival of Donald Trump in January.
The news of Gary Gensler's resignation as chairman of the Securities and Exchange Commission (SEC) will open the door to a new regulatory landscape for cryptocurrencies in the United States and potentially facilitate the integration of new cryptocurrencies into traditional markets.
This is what experts say, following Gensler's confirmation that he will leave the federal agency when Trump assumes the presidency of the country.
Gensler, who became known for his aggressive and restrictive approach to cryptocurrencies, said will leave the SEC on January 20, the same day that Donald Trump was sworn in for his second presidential term.
The imminent end of the Gensler era is drawing near
Gensler has been criticized for overstepping his role in regulating cryptocurrencies, particularly his enforcement policy toward companies and platforms that offer trading in these digital assets. During his tenure, the SEC has sued several companies in the sector, including Ripple Labs, Uniswap Labs, ConsenSys and Opensea, for alleged violations of securities laws. Others such as Immutable, Paxos and Hiro Systems have also received warnings of possible enforcement actions by the agency.
Given the above, the departure of Gary Gensler is expected to have a notable impact on the cryptocurrency market, as the agency could abandon the coercive approach that characterized it under the leadership of this regulator and that has been seen by many as an obstacle to innovation and growth of the crypto sector in the country.
Regulatory uncertainty surrounding digital assets has led several cryptocurrency companies to relocate their operations outside the United States, seeking more friendly jurisdictions for their business models. Therefore, with Gensler's departure, the market is preparing for a change in the regulatory environment, which could result in a more favorable climate for its growth and development.
A turning point for cryptocurrencies and NFTs in the US
Gary Gensler, whose term as commissioner of the agency was set to expire in 2026, has decided not to complete his term and leave office early. This means that Gensler will not only resign as chairman of the agency, but will also retire as SEC commissioner. Gensler’s decision comes at a time when the cryptocurrency market is awaiting significant regulatory changes under a Trump presidency.
Gensler’s resignation has also raised expectations of greater flexibility in regulating non-fungible tokens (NFTs) and other digital assets. Investors and companies in the sector hope that the new Trump administration will take a more balanced approach, encouraging innovation without sacrificing consumer protection.
The market reaction to the confirmation of the resignation by Gary Gensler
La Gensler resigns The SEC’s departure has been met with a mix of relief and caution. While some see its exit as an opportunity for a fresh start for digital assets in the United States, others warn that the transition could create uncertainty in the short term. It should not be forgotten that the SEC is one of the main regulatory institutions of the financial market in the United States, and that its direction has a direct impact on investor confidence and market stability.
Last week, Gary Gensler gave a speech in New York in which he anticipated his resignation from the SEC. However, he took the opportunity to reflect on his regulatory policies and take credit for the approval of the first Bitcoin and Ethereum futures and spot ETFs. However, despite this, his general approach to cryptocurrencies was perceived as an obstacle to the growth of the sector in the United States, which created a hostile climate for many startups in the sector.
The expectations and challenges of Trump's new regulatory environment
President-elect Donald Trump has yet to name an official candidate to take over as SEC chairman. Analysts and experts are speculating that Hester Peirce, Teresa Goody Guillén, Richard Farley, Dan Gallagher, Chris Giancarlo or Robert Stebbins could lead the agency in the new Trump administration; however, these are speculations and none of this is official.
Still, expectations for whoever takes over as the agency's chairman are high, with many expecting Trump to name a leader from among these names, known for having a pro-crypto approach. This could lead the SEC to take a more favorable approach toward cryptocurrencies and digital assets.
During his campaign, Trump showed an interest in fostering technological innovation and criticized excessive regulation, promising to create a more flexible regulatory environment for cryptocurrencies, which would allow attracting new investments and fostering the growth of the sector without sacrificing the security of investors and users.
The impact of Gary Gensler's departure on Ripple
Gary Gensler's departure from the SEC will have a significant impact on cryptocurrencies like XRP. The SEC's lawsuit against Ripple Labs, the company behind XRP, has been one of the most iconic cases during Gensler's tenure. However, the resolution of this case could be influenced by the change in the SEC's leadership, which could result in a more favorable environment for Ripple and other companies in the sector.
Furthermore, the arrival of a new leader at the SEC could open the door for new cryptocurrencies, in addition to Bitcoin and Ethereum, to be integrated into traditional markets through exchange-traded funds (ETFs). Currently, only Bitcoin and Ethereum ETFs exist in the United States, but the possibility of other cryptocurrency ETFs being approved could attract new institutional and retail investors to the crypto market.
The benefits of cryptocurrency ETF approval are multiple. First, ETFs provide investors with a more accessible and secure way to invest in cryptocurrencies, which could increase the adoption and use of these assets. Second, the integration of cryptocurrencies into traditional markets could improve liquidity and price stability, reducing the volatility that has characterized this market. Finally, the approval of cryptocurrency ETFs could set an important precedent, demonstrating that cryptocurrencies can coexist harmoniously with traditional financial markets.
In short, Gary Gensler's resignation from the SEC marks the end of a controversial tenure and opens the door to a new chapter in cryptocurrency regulation in the United States. The market is watching closely for the first moves of the new Trump administration, hoping for a regulatory environment that encourages innovation and consumer protection in the crypto market.
