Commissioner Jaime Lizárraga intends to step down from his position with the Securities and Exchange Commission (SEC). The Democrat will step down on January 17, three days before SEC Chair Gary Gensler is scheduled to depart from his post as well.
In a statement to Bloomberg Law, Lizárraga revealed he will step down to spend more time with his family, as his wife, Kelly, battles breast cancer. His term was set to expire in 2027. “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,” Lizárraga said in a statement. “Until my departure in January, I will remain fully engaged in the Commission’s ongoing work and activities.”
The departure of the SEC Commissioner leaves just one Democrat in the SEC when President-elect Donald Trump returns to office. Trump had already discussed electing a new SEC chair before Gary Gensler announced his upcoming departure. Caroline Crenshaw will be the sole Democrat on the five-member commission, serving alongside Republicans Hester Peirce and Mark Uyeda.
SEC Takes Another Blow in War with Crypto as Commissioner Lizárraga Steps Down
Lizárraga notably was one of the SEC members who voted against approving Spot Bitcoin ETFs earlier this year. His decision was eventually overruled, as the ETFs would go live in January 2024 to critical acclaim. Bitcoin has surged in the months following the ETFs’ launch. Now, the crypto king coin is steps away from $100k value with Trump taking office, and its biggest opposition in the SEC is stepping down.
Despite the departures of Gensler and Lizárraga leaving Crenshaw on her own, Republicans will still need Crenshaw’s support to adopt new rules or scrap existing ones, even with a majority. SEC quorum rules dictate that a three-member commission can only advance a regulation if all the commissioners participate in a vote to do so, unless there’s a recusal or disqualification. Therefore, there won’t be an immediate need to fulfill Gensler and Lizárraga seats.
Over the last several years, the cryptocurrency industry has struggled with regulatory clarity in the United States. For many within the sector, the SEC was a primary reason why. Run by Gensler and Lizárraga, it had consistently adopted a regulation-by-enforcement approach. That was evident in the regulator’s battle with Ripple Labs and continued lawsuits against other crypto firms. Now, crypto enthusiasts see the SEC Commissioner’s departure from the SEC as another win for the industry.
Bitcoin is up 2% today following the news and is set to breach $100K very soon.
