Current US Securities and Exchange Commission (SEC) Chair, Gary Gensler, announced he would step down on 20 January 2025, the same day Donald Trump begins his term as the 47th US president.
This announcement has reverberated through the financial world, coinciding with major movements in the cryptocurrency market and political shifts in Washington.
Gensler has been a controversial figure, especially in the crypto sector. During his time as SEC Chair, starting in April 2021, Gensler took a tough stance on regulating cryptocurrencies.
The SEC initiated around 100 enforcement actions against crypto companies under his leadership. Gensler has consistently argued that many cryptocurrencies are unregistered securities and should follow strict disclosure rules.
Recently, he said he wanted about 10,000 crypto tokens to register with the SEC, aiming to protect investors. However, this aggressive approach has faced backlash.
Republican leaders from 18 US states accused Gensler and the SEC of overstepping their authority and unfairly targeting the crypto industry.
In his resignation message posted on X, Gensler expressed gratitude for the role, calling it “an honour of a lifetime”. He praised the SEC’s staff, saying they are committed to ensuring fair markets for investors and issuers.
“The SEC is an extraordinary agency”, he wrote, highlighting the importance of protecting everyday Americans.
Crypto market hits new ATHs
While Gensler’s resignation made headlines, the crypto market celebrated another milestone.
On 22 November, the total market value of cryptocurrencies surged to $3.44 trillion, a record high.
Bitcoin ($BTC), the largest cryptocurrency, led the charge, reaching a new all-time high of $99,486, as per CoinGecko. Bitcoin remains dominant, making up over 60% of the market.
Solana ($SOL) was another standout, hitting $263 after an 11% jump in one day. The coin has grown by 160% this year, partly thanks to interest in spot Solana exchange-traded funds (ETFs).
Companies like Bitwise, VanEck, and 21Shares have filed applications for these ETFs, hoping for regulatory approval. Gensler’s departure has increased optimism that these funds will get the green light.
Other cryptocurrencies also performed well. $XRP rose by 25% in one day, reaching $1.42—its highest level in three years. This increase was fuelled by hopes that Ripple, the company behind $XRP, might win its long legal battle with the SEC.
Stellar ($XLM) mirrored $XRP’s rise with an 18% jump, while Cardano ($ADA) climbed 12% to reach its highest price since April 2022. Cronos ($CRO) also gained 14%, hitting $0.20.
However, Ethereum ($ETH) and other major coins lagged behind, raising questions about whether Bitcoin’s dominance will limit the altcoin market’s growth in this cycle.
Trump’s big plans for crypto
Adding to the excitement, President-elect Donald Trump has announced a bold vision for the crypto industry.
He plans to create a “Crypto Advisory Council”, which would work on policies, help draft legislation with Congress, and oversee efforts to establish a Strategic Bitcoin Reserve.
This council would be a unique addition to the White House’s policy teams. It might operate under the National Economic Council or work independently.
Several leading crypto companies, including Coinbase, Ripple, and Andreessen Horowitz’s crypto division (a16z), are vying for a spot on the council.
The CEO of the Blockchain Association, Kristin Smith, said forming this council quickly is vital for the industry’s future.
Trump’s idea for a Strategic Bitcoin Reserve is already gaining traction at the state level. In Pennsylvania, Representative Mike Cabell has proposed allocating 1% to 10% of the state’s $7 billion fund to Bitcoin.
Similar efforts are underway in Texas, with Dennis Porter, founder of the Satoshi Act Fund, pushing for adoption in other states. Porter predicts that up to 10 states could pursue similar plans in the coming year.
The market has responded positively to Trump’s pro-crypto stance. Bitcoin’s recent surge to above $99,000 reflects growing investor confidence in its potential as a strategic asset and its role in the global economy.
The combination of regulatory shifts, market highs, and new political initiatives is setting the stage for a transformative period in the crypto sector.
With leadership changes at the SEC and evolving federal and state policies, the coming years promise significant developments for digital assets.
