SEC Commissioner Jaime Lizárraga has announced his intention to resign from his position with the Securities and Exchange Commission (SEC) on January 17, 2025. This news comes just three days before SEC Chair Gary Gensler is also set to depart from his post. Lizárraga, a Democrat, cited personal reasons for his decision to step down, revealing that his wife, Kelly, is currently battling breast cancer and he wants to spend more time with his family.
In a statement to Bloomberg Law, Lizárraga expressed his gratitude for the opportunity to serve in his role and stated, “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.” Despite his impending departure, Lizárraga assured that he will remain fully engaged in the Commission’s ongoing work and activities until January.
The resignation of Lizárraga leaves just one Democrat, Caroline Crenshaw, on the five-member commission, alongside Republicans Hester Peirce and Mark Uyeda. With President-elect Donald Trump set to return to office, discussions have already begun regarding electing a new SEC chair to replace Gensler.
Lizárraga’s departure is significant in the ongoing battle between the SEC and the cryptocurrency industry. He was one of the SEC members who voted against approving Spot Bitcoin ETFs earlier this year, a decision that was eventually overruled. The ETFs went live in January 2024 to critical acclaim, leading to a surge in Bitcoin’s value. With Lizárraga stepping down, the SEC’s stance on cryptocurrency regulation may see a shift in the coming months.
The cryptocurrency industry has long struggled with regulatory clarity in the United States, with the SEC often at the center of the debate. Under the leadership of Gensler and Lizárraga, the SEC has taken a regulation-by-enforcement approach, leading to ongoing lawsuits against crypto firms like Ripple Labs. Lizárraga’s departure is seen as a positive development for crypto enthusiasts, with Bitcoin’s value already up 2% following the news and poised to breach $100,000 soon.
As the SEC navigates these changes, Republicans will still need Crenshaw’s support to advance new rules or scrap existing ones, given the quorum rules that dictate a three-member commission must have all members participate in a vote. Despite the departures of Gensler and Lizárraga, there may not be an immediate need to fill their seats. The industry will be closely watching for any shifts in the SEC’s approach to cryptocurrency regulation in the wake of Lizárraga’s resignation.