US SEC Commissioner Jaime Lizaraga is set to step down in January.

Jaime Lizarraga will step down as SEC Commissioner on January 17, 2025. His departure leaves only one Democrat on the Republican-led SEC. Discussions have intensified on the next SEC chairman, with a focus on crypto regulation.

In a significant development, US Securities and Exchange Commission (SEC) Commissioner Jaime Lizaraga has announced that he will step down on January 17, 2025.

His resignation comes after SEC Chairman Gary Gensler announced plans to step down when President-elect Donald Trump takes office.

Lizaraga's decision to resign was due to personal reasons, particularly his wife's serious illness, which he shared with President Joe Biden.

Jaime Lizaraga, who has served as SEC commissioner since 2022, was appointed during the Biden administration and had a term until 2027. His resignation means the SEC will lose one of its remaining Democratic votes on the five-member commission. Leaving Caroline Crenshaw as the lone Democratic commissioner.

The commission now has three Republicans: Hester Peirce, Mark Uyeda and the soon-to-be-vacated chairmanship of Gensler.

As Trump prepares to take office, SEC leadership will change.

Lizaraga's resignation adds to ongoing changes in SEC leadership, raising questions about future regulatory policies, particularly in areas such as cryptocurrency.

Under Gensler, the SEC has taken a tough stance on crypto, but with the departure of both Gensler and Lizárraga, the incoming administration could steer the agency in a different direction, especially given Trump's pro-crypto rhetoric.

The SEC requires only a majority of the three commissioners to make decisions, so the upcoming Republican majority will have a significant impact on the commission's agenda.

Lizaragan's departure, along with Gensler's departure, will intensify the debate over the next SEC chairman. The position is very important to set the regulatory tone, especially in new cases like cryptocurrency.

As the Trump administration prepares to fill key positions, speculation is mounting on appointees, as Brian Brooks, the former CEO of Binance.US, and current Republican SEC commissioners Hester Pierce and Mark Uyeda have emerged as candidates for the role.

Robinhood Chief Legal Officer Dan Gallagher, who had previously been considered one of the top contenders for SEC chairman, has announced that he is stepping down considering the role.

This shift marks a new chapter for the SEC, both for financial markets and possible regulatory approaches under the incoming administration.