The CEDAR Innovation Foundation (CIF) has publicly demanded the resignation of Gary Gensler, Chair of the U.S. Securities and Exchange Commission (SEC). In a statement released on November 18, CIF criticized Gensler for defying tradition by refusing to step down.
“Clinging to power”—this is how CIF described Gensler’s actions, contrasting starkly with his predecessors who customarily stepped down voluntarily when a new administration took office.
Looking back, the past three SEC Chairs resigned within two to three weeks after elections. Mary Schapiro, appointed under President Obama, announced her resignation on November 26, 2012, and officially left office on December 14, 2012. Similarly, Mary Jo White declared her resignation on November 14, 2016, weeks after Donald Trump’s victory, and departed on January 20, 2017. Even Jay Clayton, appointed by Trump, announced his resignation on November 16 following Trump’s loss to Biden.
CIF is not alone in its criticism. Notable entities and individuals, including the American Securities Association, former SEC official John Reed Stark, and billionaire Mark Cuban, have also called for Gensler’s resignation.
Signs of an Exit?
Although no official move has been made, some of Gensler’s recent remarks are seen as subtle hints of his departure. During a speech at the Institute on Securities Regulation, he reflected on his tenure’s achievements, particularly SEC’s handling of the crypto industry. He indirectly mentioned leaving by stating that others would carry forward unfinished regulatory work.
However, Gensler’s “legacy tour” has faced backlash. A group of retail investors published an open letter sarcastically labeling his term as one of the most damaging eras in recent financial history, citing cases like Ripple and Debt Box as examples of mismanagement.
Related: Canary Capital Proposes Hedera ETF to SEC
Who Will Succeed Gensler?
While no official nominations have been made, several potential candidates have emerged, including:
- Dan Gallagher, Chief Legal Officer of Robinhood
- Brian Brooks, former Acting Comptroller of the Currency
- Paul Atkins, former SEC Commissioner
- Current SEC Commissioners Hester Peirce and Mark Uyeda
Prediction markets like Kalshi currently favor Brooks, giving him a 48% chance of being selected, followed by Gallagher at 25% and Uyeda at 5%.
However, Trump has yet to make an official nomination, likely due to Gensler’s refusal to resign. While Trump has vowed to fire Gensler on his first day in office, the President can only remove an SEC Chair for severe reasons such as inefficiency or misconduct. Trump can, however, demote Gensler to Commissioner and appoint someone else as Chair until Gensler’s term ends in June 2026.
