Just weeks after Gary Gensler’s resignation, another key figure at the United States Securities and Exchange Commission (SEC), Commissioner Jaime Lizárraga, has announced his intent to leave the agency. This marks a significant change in the leadership and potentially the direction of the SEC.
Lizárraga will officially step down from his role on January 17, according to a recent statement published on November 22. Since joining in the 1990s, Lizárraga has played a principal role in several legislative initiatives, most notably the Dodd-Frank Wall Street Reform and Consumer Protection Act. His decision to leave comes from a desire to dedicate more time to his wife’s battle with cancer.
With a tenure dating back to the 1990s, Lizárraga has been instrumental in various legislative matters and has served as a key advocate for robust regulations around climate risk, cybersecurity, and data breach disclosures.
Lizárraga’s exit follows closely behind that of SEC Chair Gary Gensler and will notably reduce the Democratic presence within the commission. This comes just as President-elect Donald Trump is gearing up to take office in January.
Significant changes in SEC’s leadership point towards a new era for the agency with a possible shift in focus on key regulatory aspects, notably with regards to digital assets. Gensler’s tenure was characterized by strenuous oversight of the cryptocurrency industry, primarily through enforcement decisions.
The potential for a more lenient regulatory landscape has stirred anticipation within the industry. For instance, in response to Gensler’s announced departure, the Chicago Board Options Exchange’s BZX Exchange submitted filings in preparation to list Solana exchange-traded funds from managers such as Bitwise, VanEck, 21Shares, and Canary Capital. Trump also conveyed his stance towards the crypto industry at the Bitcoin Conference in Nashville, Tennessee, where he stated his intent to “fire” Gensler on his first day in office, if elected, reaching out to the cryptocurrency-focused voters.