Who Will Be the Next SEC Chair? Gary Gensler and Jaime Lizarrage Set to Exit Soon

The U.S. Securities and Exchange Commission (SEC) is bracing for a transformative period with two of its top leaders stepping down within days of each other.

Chair Gary Gensler is set to leave on January 20, and now, Democratic Commissioner Jaime Lizárraga has announced his own departure. These exits come at a critical moment for the SEC, as debates over cryptocurrency regulation, market transparency, and investor protections reach a boiling point.

What will these high-profile resignations mean for the future of the SEC? And who will step up to lead the agency?

Lizárraga Steps Down

Commissioner Jaime Lizárraga will officially resign by January 17, citing his wife’s ongoing battle with breast cancer as the reason for stepping away. In his resignation filing, Lizárraga emphasized the importance of focusing on family during this critical time.

His departure could pave the way for Republicans to gain more influence over the SEC’s policies, especially on contentious issues like cryptocurrency regulation, potentially speeding up policy shifts that might have faced delays.

Democrats Face Shrinking Influence

Once Lizárraga exits, Caroline Crenshaw will be the only remaining Democrat on the SEC’s five-member commission heading into 2025. However, her term has already expired, meaning she could only continue in an extended role for up to 18 months. Meanwhile, Republicans Hester Peirce and Mark Uyeda will stay in their positions, strengthening the GOP’s hold over the regulatory body.

Dan Gallagher Out Of The Race

With Gary Gensler’s departure on the horizon, speculation is growing over his potential replacement. Leading names include Robert Stebbins, Paul Atkins, and Teresa Goody Guillén.

Notably, Robinhood’s CLO, Dan Gallagher was leading in the race for the next SEC Chair. However, according to CBDC , he recently shared that he does not wish to be considered for this position, although he added that it’s an honor to have his name “in the mix.”

“I am committed to Robinhood and our millions of customers who represent the new generation of retail investors,”

He added that he looks forward to working with the incoming Trump administration and the next SEC chair to promote innovation and expand opportunities for retail investors.

Chris Giancarlo, the former Commodity Futures Trading Commission (CFTC) chair known as “Crypto Dad,” also clarified that he is not interested in the SEC chair role.

Mark Uyeda Gains Traction as a Contender

Current SEC Commissioner Mark Uyeda is emerging as a strong candidate to succeed Gensler.

“One of the other very important things we can do is create safe harbors and regulatory sandboxes to allow that innovation to occur. And finally we need to work with the Congress, the White House and other federal regulatory agencies to make sure we have a cohesive and comprehensive approach to crypto,” he noted as per a latest report from Fox Business. 

Uyeda acknowledged that the final decision lies with the president but noted that whoever takes on the role will face a daunting workload.

“What I can tell you is that whoever steps in that job, there is a lot of work that needs to be done to address some of the regulatory excesses, not only at the FCC, but at other administrative agencies. There are a lot of new rules and regulations that were rolled out. There are a lot of unintended consequences, many of which will need to be addressed.”

With new leadership on the horizon, the SEC is set for a fresh start, but the challenges awaiting its next chair will be extreme!