The Securities and Exchange Commission has announced that its 33rd Chair, Gary Gensler, will step down from the Commission effective at 12:00 pm on 20 January 2025. Gensler began his tenure on 17 April 2021, in the immediate aftermath of the GameStop market events. He led the agency through a rulemaking agenda designed to enhance efficiency, resiliency, and integrity in the US capital markets. He also oversaw enforcement cases to hold wrongdoers accountable and return billions to harmed investors.
“The Securities and Exchange Commission is a remarkable agency,” said Chair Gensler. “The staff and the Commission are deeply mission-driven, focused on protecting investors, facilitating capital formation, and ensuring that the markets work for investors and issuers alike. The staff comprises true public servants. It has been an honour of a lifetime to serve with them on behalf of everyday Americans and ensure that our capital markets remain the best in the world.
During Chair Gensler’s tenure, the SEC adopted changes to the US$28 trillion US Treasury markets. To try and lower cost and risk in the Treasury markets, the agency adopted rules to promote central clearing and narrow circumstances in which broker-dealers are exempt from national securities association registration. These reforms could lower risk and enhance efficiency throughout the entirety of the US capital markets.
Under Chair Gensler, the SEC unanimously made updates to the National Market System so that stocks can be traded more efficiently with narrower spreads and lower fees. Improvements also include shortening the settlement cycle to one day, which should be good for investors and lowers risk in the market. Further, the agency unanimously adopted rules to update information regarding brokers’ execution quality. These reforms potentially benefit investors by making equity markets more efficient.
“I thank President Biden for entrusting me with this incredible responsibility. The SEC has met our mission and enforced the law without fear or favour,” he said. “I’ve greatly enjoyed working with my fellow Commissioners, Allison Herren Lee, Elad Roisman, Hester Peirce, Caroline Crenshaw, Mark Uyeda, and Jaime Lizárraga. I also thank Congress, my colleagues across the US government, and fellow regulators around the world.”
Commissioner Jaime Lizárraga said, “It has been an honour to serve with Chair Gensler. Over the past 25 years that I’ve known and worked with Gary, he has demonstrated an unwavering commitment to public service. At the SEC, he advanced an agenda that strengthened investor protections and the resiliency of our capital markets. I am proud of all that we accomplished together on behalf of the investing public and wish him the best in his future endeavours.”
