On 21 November 2024, the United States Securities and Exchange Commission announced that Gary Gensler, the 33rd Chair of the Commission, will step down from his role on 20 January 2025. Chair Gary Gensler, who began his tenure on 17 April 2021 in the wake of the GameStop market events, has led the agency through a transformative period marked by sweeping reforms to enhance the efficiency, resilience, and integrity of United States capital markets.
During his tenure, Chair Gary Gensler spearheaded several rulemaking agenda, bringing updates to both the US $28 trillion Treasury market and the US $55 trillion equity market. These included implementing central clearing in Treasury markets, narrowing exemptions for broker-dealers, and shortening the equity market settlement cycle to one day. The reforms also introduced measures to enhance transparency in broker execution quality, benefitting investors with lower costs and improved market efficiency.
Under Chair Gary Gensler’s leadership, the United States Securities and Exchange Commission advanced significant changes in corporate governance. New rules mandated timely disclosure of executive pay versus performance, required clawbacks of executive compensation tied to misstated financials, and updated standards for corporate insiders selling shares. The Commission ensured that shareholders could vote for a mix of board candidates through universal proxy cards, furthering trust in capital market governance.
The United States Securities and Exchange Commission also made strides in addressing emerging challenges. During Gensler’s leadership, the Commission strengthened disclosure requirements for public companies, particularly regarding cybersecurity and climate risks, and mandated enhanced reporting of personal data breaches by broker-dealers and investment advisers. In addition, transparency was bolstered through the publication of anonymised data from registered investment funds, private funds, and advisers.
Chair Gary Gensler oversaw rigorous enforcement efforts, with the Commission filing over 2,700 enforcement actions and recovering approximately US $21 billion in penalties and disgorgements. The agency returned more than US $2.7 billion to harmed investors and awarded US $1.5 billion to whistleblowers. This period also saw a strong focus on crypto markets, where the Securities and Exchange Commission brought numerous actions against intermediaries for fraud, registration violations, and wash trading. Courts consistently upheld the Commission’s authority in enforcing securities laws, irrespective of the form in which they were offered.
During his tenure, the United States Securities and Exchange Commission enhanced resilience in financial reporting. Amendments to Form PF improved transparency for large hedge funds and private equity funds. The Public Company Accounting Oversight Board, under the Commission’s oversight, achieved a historic agreement with Chinese authorities, allowing the inspection of audit firms in China and Hong Kong for the first time. This milestone addressed long-standing concerns about the auditing of China-related companies listed in the United States.
Reflecting on his time in office, Chair Gary Gensler said, “The Securities and Exchange Commission is a remarkable agency, the staff and the Commission are deeply mission-driven, focused on protecting investors, facilitating capital formation, and ensuring that the markets work for investors and issuers alike. The staff comprises true public servants. It has been an honor of a lifetime to serve with them on behalf of everyday Americans and ensure that our capital markets remain the best in the world. He added: “I thank President Biden for entrusting me with this incredible responsibility. The SEC has met our mission and enforced the law without fear or favor. I’ve greatly enjoyed working with my fellow Commissioners, Allison Herren Lee, Elad Roisman, Hester Peirce, Caroline Crenshaw, Mark Uyeda, and Jaime Lizárraga. I also thank Congress, my colleagues across the U.S. government, and fellow regulators around the world.”
Before leading the United States Securities and Exchange Commission, Chair Gary Gensler held several prominent roles, including Chair of the United States Commodity Futures Trading Commission, where he led the Obama Administration’s reform of the US $400 trillion swaps market. He also played a pivotal role in the creation of the Sarbanes-Oxley Act and served in various capacities within the United States Department of the Treasury. His career also includes contributions to academia, where he served as a professor at the Massachusetts Institute of Technology, and to the private sector during his tenure at Goldman Sachs.
(Source: https://www.sec.gov/newsroom/press-releases/2024-182)
