WASHINGTON – The Securities and Exchange Commission (SEC) announced the upcoming departure of its Chair, Gary Gensler, who will leave the agency at noon on January 20, 2025. Gensler, who began his term on April 17, 2021, has been at the helm of the SEC during a period of significant rulemaking and enforcement designed to enhance the U.S. capital markets’ efficiency, resilience, and integrity.
Under Gensler’s leadership, the SEC has implemented major reforms across various sectors of the financial markets. In the Treasury markets, the SEC adopted rules to promote central clearing and narrow broker-dealer exemptions from registration, targeting a reduction in costs and risks. Equity markets saw their first substantial updates in nearly two decades, with unanimous approval for changes to the National Market System, including more efficient trading, narrower spreads, lower fees, and a shortened settlement cycle.
Gensler’s tenure also emphasized the robustness of financial systems, with amendments to Form PF requiring certain investment advisers to report significant events promptly. Money market funds underwent reforms to bolster their liquidity and transparency, especially during market stress.
In corporate governance, the SEC updated insider trading rules, executive compensation recovery policies, and shareholder voting procedures. New rules were also adopted to require more timely disclosures by those acquiring significant company stakes.
The SEC’s focus on investor information led to the adoption of rules enhancing disclosures on cyber and climate risks, data breaches, and the operations of special purpose acquisition companies (SPACs). The agency also increased market transparency by publishing aggregate data on investment funds and advisers.
Accounting and auditing oversight saw progress as well, with the Public Company Accounting Oversight Board (PCAOB) updating numerous standards and securing a protocol with Chinese authorities for the inspection and investigation of auditors of China-related companies listed in the U.S.
Enforcement actions during Gensler’s term resulted in approximately $21 billion in penalties and disgorgement, with over $2.7 billion returned to harmed investors. The SEC also continued to address investor protection in the crypto markets, bringing actions against intermediaries for various violations.
Gensler’s career has included roles as Chair of the U.S. Commodity Futures Trading Commission, senior advisor to U.S. Senator Paul Sarbanes, and professor at the MIT Sloan School of Management. He has been recognized with the Alexander Hamilton Award, the U.S. Treasury’s highest honor, among other accolades.
The announcement of Gensler’s departure comes as part of a statement from the SEC, reflecting on the Chair’s contributions and the agency’s advancements during his tenure.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Source: Cryptocurrency - investing.com
