Another SEC Democrat to Drop Out, Leaving Republicans Running Agency by February
Commissioner Jaime Lizárraga, a Democrat, announced his resignation from the U.S. Securities and Exchange Commission (SEC) effective January 17, 2025. This departure follows SEC Chair Gary Gensler's impending exit as President-elect Donald Trump prepares to take office. With Lizárraga's departure, the SEC will consist of two Republican commissioners and one Democrat, Caroline Crenshaw, whose term has already expired but may be extended. Lizárraga cited his wife's serious illness as the reason for his decision. The SEC has been known for its firm regulation of cryptocurrency, under Gensler's leadership, which may now shift with a Republican majority. This transition could allow for a re-evaluation of current enforcement actions related to digital assets, especially if Trump appoints one of the existing Republican commissioners as the acting chair. Gensler acknowledged Lizárraga's commitment to protecting investors during his tenure at the SEC.
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