• Jaime Lizárraga will resign as SEC Commissioner on January 17, 2025.
• His departure leaves only one Democrat on the SEC amid a Republican-led shift.
• Discussions intensify over the next SEC Chair, with crypto regulation in focus.

In a significant development at the US Securities and Exchange Commission (SEC), Commissioner Jaime Lizárraga has announced that he will step down from his post on January 17, 2025.

His resignation comes shortly after SEC Chair Gary Gensler revealed plans to depart when President-elect Donald Trump is sworn into office.

Lizárraga’s decision to resign has been attributed to personal reasons, specifically his wife’s serious illness, a matter he shared with President Joe Biden.

Jaime Lizárraga, who has served as an SEC Commissioner since 2022, was appointed during the Biden administration and had a term slated to last until 2027. His departure means that the SEC will lose one of the remaining Democratic voices on the five-member commission, leaving Caroline Crenshaw as the only Democratic Commissioner.

The commission will now have three Republicans: Hester Peirce, Mark Uyeda, and the soon-to-be vacated chairmanship under Gensler.

SEC’s leadership change as Trump prepares to assume office

The timing of Lizárraga’s resignation adds to the ongoing shift in the SEC’s leadership, raising questions about the future direction of regulatory policies, especially on issues like cryptocurrency.

Under Gensler, the SEC pursued a stringent stance on crypto, but with the departure of both Gensler and Lizárraga, the upcoming administration may steer the agency in a different direction, particularly in light of Trump’s pro-crypto rhetoric.

The SEC requires only a majority of three commissioners to make decisions, so the incoming Republican majority will hold significant sway over the commission’s agenda.

Lizárraga’s departure, alongside Gensler’s exit, further intensifies the debate over the next SEC Chair. The position is crucial for setting the regulatory tone, particularly on emerging issues like cryptocurrency.

As the Trump administration prepares to fill key positions, speculation grows over potential appointees, with names such as Brian Brooks, the former CEO of Binance.US, and current Republican SEC Commissioners Hester Peirce and Mark Uyeda emerging as potential candidates for the role.

Robinhood Chief Legal Officer Dan Gallagher, who was previously considered one of the top contenders for the SEC chair, has announced his withdrawal from consideration for the role.

This shift signals a new chapter for the SEC, with potential ramifications for both financial markets and regulatory approaches under the incoming administration.

When asked if he would like to take the job, which Dan Gallagher said he isn’t interested in, Uyeda replied that it is up to Donald Trump. However, he warned that the next US SEC Chair will have a lot of work to do to address regulatory excesses.

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The Blockchain Association has outlined a roadmap for the incoming administration of Donald Trump, aiming to reshape the United States’ approach to the digital asset industry.

In a detailed letter sent to the President-elect and the new Congress, the trade association emphasized key actions that could support innovation while addressing regulatory challenges faced by the crypto sector.

Blockchain Association Outlines 5 Crypto Priorities For Donald Trump

The Blockchain Association has stressed the need for a clear and comprehensive regulatory framework for digital assets. It called on Donald Trump and Congress to use bipartisan support to enact market structure and stablecoin regulation that encourages innovation and prevents consumer harm.

A clear legal system should be put in place to avoid the creation of uncertainty and assure the world that America is at the forefront of blockchain technology.

The association also demanded an end to debanking of crypto companies, which it has claimed has damaged companies by denying them access to established financial services. It noted that these companies require banking services to make payments to employees, vendors, and taxes and said that such denial hampers the industry.

New Leadership at the US SEC and Treasury

Among the priorities named by the Blockchain Association, the main one is the personnel change at the Securities and Exchange Commission (SEC) and the Treasury Department. The association noted that under the current chairman of the SEC, Gary Gensler, the current approach to regulation is problematic, especially enforcement-based.

The SEC has confirmed Gensler’s decision to resign on January 20, 2025, which is the same day that Donald Trump will be sworn in. In his farewell statement, Gensler said, “It has been a privilege to serve at the SEC.” The Blockchain Association has expressed hope that new leadership at the SEC can bring a more permissive, and cooperative, approach to regulation.

At the Treasury Department, the association called for a focus on fair tax treatment for digital assets and prioritizing privacy protections. The association also urged the administration to review the controversial Broker Rule, which it claims may push businesses offshore.

Proposal for a Crypto Advisory Council

Donald Trump’s administration has proposed forming a crypto advisory council to guide digital asset policies and support innovation. According to the Blockchain Association, this council should facilitate collaboration between the government and private sector, ensuring that policies are practical and balanced.

The proposed council would work with federal agencies like the SEC, the Commodity Futures Trading Commission (CFTC), and the Treasury. It would also oversee initiatives such as the creation of a Bitcoin reserve, which Trump’s team envisions as a strategic asset for the U.S. economy.

Concurrently, Ripple CEO Brad Garlinghouse expressed optimism about the Trump administration’s potential impact on the crypto industry. Speaking with Fox Business, he noted that the Biden administration had been hostile toward the sector, and early signs from the incoming administration suggest a more favorable approach.

The Blockchain Association emphasized its readiness to collaborate with Donald Trump and Congress, stating, “We stand prepared to work with the administration to establish the U.S. as a global leader in crypto innovation.”

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Kelvin Munene Murithi

Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.

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