Bitcoin Value Increases Following Announcement of SEC Chair’s Departure Ahead of Trump’s Inauguration

Following the announcement by Gary Gensler, one of the cryptocurrency industry’s most vocal skeptics, regarding his forthcoming departure as chair of the US financial watchdog, cryptocurrency values have surged. This move comes ahead of Donald Trump taking office as the President of the United States in January.

Gary Gensler disclosed his plan to step down from the Securities and Exchange Commission (SEC) on January 20th in an announcement on X.

Previously, Trump had made his intentions clear to remove Gensler from his position on the first day of his administration, following Gensler’s legal actions against various cryptocurrency trading platforms and activities.

In his X post, Gensler expressed his gratitude to President Biden for the opportunity to serve, saying, “I thank President Biden for entrusting me with this incredible responsibility.”

In 2021, upon his appointment as SEC chair, Gensler immediately requested additional legislative power to oversee the loosely regulated crypto sector, which he described as infested with “fraud, scams, and abuse.”

Bitcoin continued its upward trajectory on Friday morning, reaching a new high of $99,500 (£79,463). Over the past 24 hours, Ether’s value has increased by over 7%, and the ‘meme coin’ Dogecoin has seen a 2% hike.

As reported by CoinDesk, the crypto market has reached new heights, with a collective valuation of a record $3.4 trillion after witnessing a 4.5% increase within a single day.

While Gensler’s tenure as SEC chair was set to last until 2026, it has become customary for the chair to resign with the transition of presidential power.

Throughout his time at the SEC, Gensler implemented regulations aimed at increasing market transparency and improving corporate disclosures.

Nevertheless, Gensler faced numerous setbacks in court while trying to enforce stricter regulations.

On the same day he announced his resignation, a Texas federal court overturned the SEC’s newly established rules for the US Treasury market worth $27 trillion, ruling that the SEC had overreached its authority.

“We have fulfilled our mission and enforced the law impartially,” Gensler stated in his Thursday X post.

With Trump known for his more favorable stance toward cryptocurrencies, the market has been on the uprise since his election win.

Crypto enterprises have contributed at least $119 million to political candidates they believe will support crypto-friendly legislation.

During his leadership, Gensler also pursued regulatory advancements in climate disclosures, cybersecurity, and market modifications.

However, a US appeals court invalidated rules that would have compelled private equity and hedge funds to be more transparent.

Following a flurry of lawsuits, the SEC was impeded from implementing a measure that would have mandated corporate disclosures of climate-related risks for the first time.

Trump is expected to nominate a successor to Gensler, likely choosing a candidate inclined to relax regulations and possibly abandon the proposed rules put forth by Gensler that have yet to be finalized.

Before the resignation news, Ken Griffin, Citadel’s billionaire founder, criticized the SEC’s proposed rules, commenting, “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,” during his talk at the Economic Club of New York on Thursday.

The Trump transition team is reported by CoinDesk to be considering Teresa Goody Guillén, a securities attorney, for the SEC chair position. Guillén co-leads the blockchain team at BakerHostetler and has represented crypto firms and individuals in SEC investigation and enforcement matters.