Democratic SEC member to step down, leaving GOP in majority

By Douglas Gillison

(Reuters) – A Democratic member of the five-person U.S. Securities and Exchange Commission said on Friday he will step down more than two years early, leaving just two Republicans and one Democrat in place from the start of President-elect Donald Trump’s administration in January.

Commissioner Jaime Lizarraga, a former aide to former House Speaker Nancy Pelosi who in 2022 was confirmed to a five-year SEC term, cited his wife’s poor health in announcing his decision.

The news comes a day after SEC Chair Gary Gensler announced he would leave the commission on Jan. 20, the day of Trump’s scheduled inauguration.

In a statement, Gensler praised Lizarraga, saying that the two had worked together in different roles stretching back more than a decade.

“At the SEC, he has been an excellent partner in our work to protect investors, facilitate capital formation, and ensure markets work for investors and issuers alike,” Gensler said.

Trump has yet to announce a nominee to replace Gensler, with Robinhood Markets (NASDAQ:HOOD)’ Chief Legal Officer Dan Gallagher bowing out on Friday.

With Lizarraga’s departure, Republicans will outnumber Democrats on the commission from day one of the new Trump administration, likely boosting their ability to begin a sharply different course on policy matters such as regulating cryptocurrency and pursuing enforcement cases.

During his campaign, Trump largely adopted the crypto industry’s grievances against Gensler, whom he had vowed to fire. Gensler has rejected calls to adopt new rules specifically for the digital assets.