Another SEC Departure: Commissioner Lizárraga To Step Down In January

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As an analyst with over two decades of experience in the financial industry, I can’t help but admire Commissioner Jaime Lizárraga’s decision to prioritize his family during such a critical time for the Securities and Exchange Commission (SEC). His dedication to public service spanning more than three decades is commendable, and it’s heartening to see him make this personal sacrifice.

Commissioner Jaime Lizárraga from the Securities and Exchange Commission is planning to resign on January 17th, which is just three days before President-elect Donald Trump’s inauguration. In a conversation with Bloomberg Law, he mentioned that his decision to leave the SEC stems from wanting to spend more quality time with his family and provide support for his wife who is currently fighting breast cancer.

Lizarraga’s statement follows the recent news, shared via Twitter or X, where SEC Chairman Gary Gensler declared his resignation effective from January 20th, which coincides with the date of Donald Trump’s second inauguration.

With Lizarraga’s departure, only one Democrat will remain on the agency during Trump’s second term.

NEW: In response to the reports of Commissioner Elizarraga’s resignation, SEC Chairman Gary Gensler has issued a statement.

For over three decades, Jaime Lizárraga has demonstrated unwavering commitment as a public servant, prioritizing the needs of working families. In this capacity, I’ve had the pleasure of…

— Eleanor Terrett (@EleanorTerrett) November 22, 2024

Lizárraga Cites Personal Reasons Over Departure

In an interview with Bloomberg Law on Friday, Commissioner Lizárraga expressed his intentions to depart from the agency. He mentioned that he desires to devote more time to his loved ones, especially his wife, Kelly.

During the same interview, he disclosed that he contemplated on his choice and the obstacles to come, ultimately choosing to prioritize his family. Lizárraga previously served as an aide for Rep. Nancy Pelosi from California and took up his role at the agency in 2022; his tenure ends in 2027.

While at SEC, Lizarrraga championed accountability and transparency concerning environmental threats and data security incidents. Additionally, he expressed his ongoing dedication to his role within the agency right up until his final day in service.

A Republican-Led SEC To Start Trump’s 2nd Administration

The regulatory agency’s commission consists of five members, each of whom is selected by the president after receiving approval and counsel from the Senate. Among these, three commissioners identify as Democrats – Gensler serves as the chairman, while Lizárraga and Crenshaw are also part of this group.

SEC Commissioner Jaime Lizarraga plans to resign on January 17th, resulting in only one Democratic member remaining on the commission once President-elect Donald Trump resumes his term of office.

— Bloomberg Law (@BLaw) November 23, 2024

This week saw the announcements of Lizárraga’s and Gensler’s departures, leaving only Crenshaw, Hester Peirce, and Mark Uyeda on the team. Notably, Peirce and Uyeda have often presented differing opinions in SEC decisions.

As President Donald Trump assumes office, there’s anticipation that the agency might implement crypto-supportive regulations and policies. With Gensler and Lizárraga set to depart by January, the cryptocurrency sector may find a more favorable business environment ahead.

No Confirmation Yet On New Chair, Commissioners

Over the last few months, the SEC has faced a great deal of criticism for its tough regulatory measures. If elected, Trump has stated that he will replace Gensler and halt the harsh crackdowns on digital currencies.

Trump hasn’t yet named who will replace Gensler and Lizárraga, with several highly qualified candidates such as former commissioner Paul Atkins, Robert Stebbins, and Dan Gallagher being suggested for the roles. However, Gallagher himself has expressed that he’s not keen on taking up the leadership position.

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2024-11-23 22:30