Cryptocurrencies rallied after Gary Gensler, one of the industry’s biggest critics, said he would step down as head of the US financial regulator when President-elect Donald Trump is inaugurated in January. will

In a post on X, Gensler confirmed that he will resign from the US Securities and Exchange Commission (SEC) on January 20.

Trump previously said he plans to fire Gensler “on day one” of his presidency after the SEC chief took legal action against cryptocurrency trading and platforms.

“I thank President Biden for entrusting me with this incredible responsibility,” Gensler wrote in a post on X.

Gensler was appointed chair of the SEC in 2021 and immediately called on Congress to give him more powers to regulate the “wild west” crypto sector, saying it was “infested with fraud, scams and is full of abuse”.

Bitcoin extended its recent rally on Friday morning, reaching $99,500 (£79,463) for the first time. Ether is up more than 7% in the past 24 hours, while “memecoin” Doge is up 2%.

According to digital currency news site CoinDesk, the total market capitalization of crypto-coins is now a record $3.4tn, up 4.5% in the past 24 hours.

Officially, Gensler’s five-year term at the SEC was supposed to run until 2026, but leaving the chair after a change in presidency has become routine.

Under Gensler, the SEC pushed rules to bring more transparency to markets and improve corporate disclosure.

However, it has faced several legal setbacks in its efforts to tighten regulation.

On the day he announced his resignation, a federal court in Texas struck down the SEC’s new rules for the $27tn US treasury market, finding the regulator had overstepped its authority.

“The SEC has fulfilled our mission and enforced the law without fear or favour,” Gensler said in his X post on Thursday.

Trump has more pro-crypto views and since he won the US election, cryptocurrencies have been increasing in value.

Crypto firms have donated at least $119m to congressional candidates who they believe will pass legislation more favorable to their goals.

In her time as SEC chair, Gensler’s regulatory efforts also included new standards for climate disclosures and cybersecurity and market changes.

However, a US appeals court struck down rules that would have forced private equity and hedge funds to increase transparency.

A series of lawsuits also prompted the SEC to halt a measure that would have required companies to disclose their climate risks for the first time.

Trump will nominate Gensler’s successor and is expected to appoint someone who will seek to deregulate and possibly repeal rules proposed by the outgoing SEC chair but not yet. Not finalized.

In remarks before Gensler’s resignation was announced, Ken Griffin, the billionaire founder of hedge fund Citadel, said: “Over the past four years, there have been a number of policy changes proposed where, to put it bluntly, it goes like this: “What’s the problem? We’re trying to solve it?”

“Much of Gensler’s agenda, in my opinion, won’t survive the next four years. Between the courts and a new SEC, we’re going to see a rollback of the regulatory onslaught,” Griffin told the Economic Club of New York on Thursday. told

According to CoinDesk, the Trump transition team is reportedly considering securities lawyer Teresa Goody Gallen to lead the SEC.

She is co-leader of the blockchain team at the law firm BakerHostetler, and has defended crypto firms and individuals facing investigations and enforcement actions brought by the SEC.