Lizárraga’s departure, set for January 17, leaves the SEC with a Republican majority as President-elect Donald Trump prepares to take office on January 20. This development could accelerate the agency’s anticipated policy pivot, particularly in areas like cryptocurrency regulation.

Lizárraga cited personal reasons for his resignation, noting his wife’s serious illness. “In reflecting on the challenges that lie ahead, we have decided that it is in the best interests of our family to close this chapter in my 34-year public service journey,” he said in a statement. His departure leaves Caroline Crenshaw as the lone Democrat on the five-member commission, though her term has already expired, placing her in an extended holdover status that could last up to 18 months.

Under Gensler’s tenure, the SEC aggressively pursued enforcement actions against cryptocurrency firms, asserting that platforms like Coinbase and Binance operated as unregistered securities exchanges. This stance led to numerous legal battles, with the crypto industry pushing back on the agency’s interpretation of tokens as securities. These unresolved cases and regulatory debates will now be inherited by a Republican-led commission.

The Outgoing Gary Gensler, source: Wikipedia

Speculation is mounting that Trump will appoint one of the current Republican commissioners, likely Mark Uyeda, as acting chair. Uyeda, along with Commissioner Hester Peirce, would hold a two-member majority and could immediately steer the agency toward more industry-friendly policies, particularly in crypto regulation. This leadership transition might also pave the way for a broader reconsideration of enforcement priorities and legal strategies.

Gensler, who will step down when Trump takes office, praised Lizárraga’s dedication to public service. “He has been steadfastly focused on elevating the interests of everyday Americans,” Gensler said. “At the SEC, he has been an excellent partner in our work to protect investors, facilitate capital formation, and ensure markets work for everyone.”

The upcoming leadership changes at the SEC come at a critical juncture for cryptocurrency markets, as Bitcoin recently surged to new highs above $98,000 amid bullish sentiment. Trump’s rumored consideration of appointing a crypto-savvy lawyer as SEC chair signals a potential recalibration of the agency’s approach to digital assets, further heightening the stakes of the transition.