- Gensler’s resignation aligned with Bitcoin’s record highs.
- Lizarraga’s departure creates a political vacancy in the SEC.
Jaime Lizarraga, one of three Democratic commissioners at the Securities and Exchange Commission, announced Wednesday that he will leave the agency in January 2024. Lizarraga, one of the SEC’s most high-profile officials and a Democrat, said he had already informed President Joe Biden. He cited family reasons for his decision to depart.
Commissioner Jaime Lizarraga also announced his resignation. This leaves Caroline Crenshaw as the lone Democrat sitting at the regulatory body. Lizarraga’s appointment to the SEC took place in July 2022. He stated that the decision was to spend more time with family. In particular, he wanted to be with his wife Kelly, who has been fighting breast cancer.
Lizarraga’s Legacy and Crypto Views
While working at Gensler, Lizarraga has contributed to the company’s investor and equity protection initiatives. He has also supported efforts toward fair markets during his service. The two had previously collaborated in the US Department of Treasury following the 2008 financial crisis.
Gensler lauded Lizarraga’s contributions. In every stage of his career, he has been resolutely dedicated to promoting the interests of Main Street Americans. He has been an outstanding partner in our work to protect investors, facilitate capital formation, and ensure markets work for investors and issuers alike.
Not a strong voice in crypto policy, though, Lizarraga gave out warning signals that the sector was not transparent enough. In his speech in early November 2022, after the FTXsiting saga, he warned of the volatility and risks of the digital asset, the lesson of the crypto winter, and the dramatic end with FTX.
Volatility in values, digital assets are, says Lizarraga whose latest revelations of how fragile the market of digital assets can be has recently happened. Lizarraga’s move and Gensler’s resignation herald massive changes in new leadership at the SEC. These changes see much weight being transferred to Caroline Crenshaw, who is the only Democratic commissioner remaining.
The transitions are happening at a very crucial time in the life cycle of the SEC because the agency continues to face challenges in regulating emerging markets like cryptocurrencies while having to ensure investor protection.
Lizarraga also has an indelible mark in terms of investor advocacy and transparent markets through the approach to the agency’s regulation. Pairing that with public service will shape the future trajectory of the SEC as new leadership moves into the firm.
