Gary Gensler, the current SEC Chair, will resign on January 20, paving the way for President Trump's appointee to take over.

Gary Gensler, the Securities and Exchange Commission Chair, will resign on January 20, allowing President-elect Donald Trump to appoint a new replacement promptly.

The SEC has been led by Gensler since 2021, and under his leadership, the commission has taken a bold but contentious stance on several regulatory matters, including cryptocurrencies. Trump has yet to reveal his choice for the next SEC chair, but it is anticipated that the new head will be more accommodating to Wall Street and crypto.

Gensler, who serves as SEC commissioner, could have remained in his position until 2026 since his term is five years long. However, he is leaving the agency entirely, as was widely predicted.

Gensler stated in a press release that the staff and the Commission are deeply committed to their mission of safeguarding investors, promoting capital formation, and ensuring that the markets operate fairly for both investors and issuers. The staff members are dedicated public servants who have been honored to serve on behalf of everyday Americans and maintain the world's top capital markets.

Under Gensler, the SEC accelerated settlement times for stock trades to one day, a change prompted by the meme-stock trading frenzy in early 2021. Additionally, the agency pushed for more disclosures from publicly traded companies and financial advisors for investors.

The SEC, led by Gensler, has had several high-profile disputes with the crypto industry, including a legal battle with Grayscale to prevent the launch of bitcoin ETFs. Despite losing in court, the SEC has continued to scrutinize the crypto industry, suing several large digital asset companies in recent years, including Coinbase, with mixed results.

Trump could seize the chance to restructure the SEC with the impending vacancy of Gensler's seat and the expiration of two other commissioners' terms in either 2024 or 2025.

The commissioners have the option to serve for an additional 18 months after the expiration of their term. The appointment of presidential nominees to the SEC requires the approval of the Senate.