Jaime Lizarraga will resign as SEC Commissioner on January 17, 2025. His departure leaves only one Democrat remaining on the SEC amid a shift toward Republican leadership. The debate over the next SEC chairman is intensifying, with a focus on virtual currency regulation.
In a significant development at the U.S. Securities and Exchange Commission (SEC), Commissioner Jaime Lizarraga has announced that he will resign from his position on January 17, 2025.
His resignation comes shortly after SEC Chairman Gary Gensler announced his plans to step down when President-elect Donald Trump takes office.
Lizarraga's decision to resign was said to be due to personal reasons, specifically his wife's serious illness, an issue he shared with President Joe Biden.
Jaime Lizarraga, who has been serving as SEC commissioner since 2022, was appointed under the Biden administration and was scheduled to serve until 2027. His resignation means the SEC will lose one of its remaining Democratic voices on the five-member commission. leaving Caroline Crenshaw as the only Democratic committee member.
The committee will currently have three Republicans, Hester Peirce, Mark Ueda, and the soon-to-be-vacated chair under Gensler.
SEC leadership changes in preparation for Trump's inauguration
The timing of Lizarraga's resignation adds to the ongoing changes in SEC leadership and raises questions about the future direction of regulatory policy, particularly on issues such as cryptocurrencies.
Under Mr. Gensler, the SEC pursued a tough stance on cryptocurrencies, but the departures of Mr. Gensler and Mr. Lizarraga may allow the incoming administration to steer the SEC in a different direction, especially in light of Mr. Trump's pro-crypto comments. There is a possibility of cutting.
The SEC requires only a three-member majority to make decisions, so the incoming Republican majority will have significant influence over the committee's agenda.
Lizarraga's resignation and Gensler's departure further intensify the debate over who will be the next SEC chairman. This position is crucial in setting the direction of regulation, especially regarding emerging issues such as cryptocurrencies.
As the Trump administration prepares to reshuffle key positions, speculation is mounting over potential appointees, including former Binance US CEO Brian Brooks and current Republican SEC Commissioner Hester Peirce. Names such as Mark Ueda and Mark Ueda have been floated as potential candidates.
Dan Gallagher, Robinhood's chief legal officer, who was previously considered one of the top candidates to become SEC chairman, has announced that he is withdrawing from consideration for the position.
This change signals the beginning of a new chapter for the SEC, which could impact both financial markets and regulatory approaches under the next administration.
