• The SEC has confirmed the departure of Gary Gensler and Jaime Lizarraga.
• Gensler and Lizarraga’s departure marks the beginning of a new era.
• The remaining three commissioners form a quorum for decision-making.

The U.S. Securities and Exchange Commission (SEC) has confirmed that Gary Gensler and Jaime Lizarraga have stepped down from their roles as commissioners. Data on the SEC’s website revealed only three commissioners, including Hester Pierce, Caroline Crenshaw, and Mark Uyeda, remain from the previous five.

In a post on X, crypto lawyer James Murphy referred to this development as “the beginning of a new era.” Murphy noted that the SEC can still function with a quorum of three commissioners and decisions can be made through a two-to-one vote.

Departures Signals Shift

Gensler’s departure from the SEC did not surprise many people, considering the recent antecedents and Donald Trump’s promise not to work with the now-former chair of the commission. Meanwhile, Lizarraga’s departure surprised many, with his farewell statement appearing on the SEC’s website only days ago.

Lizarraga highlighted the commission’s achievements while he served as a commissioner, acknowledging the efforts and input of the team he worked with. According to Lizarraga, their reforms will level the playing field for large and small investors and benefit our capital markets for years.

Related: Ripple Lawyer’s Jab at Gensler as SEC Leadership Changes

Speculations Over Crypto Cases

The exit of Gensler and Lizarraga has sparked discussions within the crypto community. Many are considering whether the remaining three commissioners will take notable steps toward dropping some cases against crypto establishments.

The focus now shifts to who Trump will nominate to fill these vacancies, as the future direction of U.S. crypto regulation hinges on the next SEC chair.

Related: SEC Chair Gary Gensler gets pressed on crypto in his final interview with Joe Kernen

SEC Appointment Process

According to the SEC website, the President appoints commissioners with the Senate’s approval. Commissioners serve staggered five-year terms, with one position expiring each year on June 5. To maintain nonpartisanship, no more than three commissioners can belong to the same political party.

The crypto community is watching closely as President Trump’s administration reshapes the SEC. The choice of the next SEC chair will be critical for the industry, as it could set the tone for regulations and policies impacting digital assets in the years ahead.