Financial trade group calls on SEC chief Gensler to 'immediately' step down

The American Securities Association (ASA), a financial trade group, called on Securities and Exchange Commission (SEC) Chair Gary Gensler to immediately resign from his post following the reelection of former President Trump.

"Last night the people voted for this country to take a new direction, and Chairman Gensler should respect that vote by stepping down from his position immediately," ASA President and CEO Chris Iacovella wrote in statement Wednesday.

"This is the only way for America's working families, retirement savers, and small businesses to rebuild their trust and confidence in the institution of the SEC," Iacovella added.

The statement from the ASA, which represents large asset managers, came less than a day after the presidential race was called for Trump, who has pledged to fire Gensler if reelected.

Gensler has faced backlash for his hardline approach to the cryptocurrency industry, which has gained prominence in Washington since Trump's first term.

Trump, who once called crypto a "scam," has shifted gears on the topic and embraced the industry on the campaign trial while criticizing the Biden-Harris administration's crypto-critical approach, spearheaded by Gensler.

While the president-elect has pledged to "fire" Gensler from the role, the SEC is an independent federal agency, meaning its commissioners are protected from being removed without cause. The reasoning is supposed to be based on law and policy considerations, not political influence.

Trump cannot force Gensler to step down as a commissioner, though he can name a new interim SEC chair once he is inaugurated in January, CoinDesk reported. The former president can also nominate a new commissioner to the Senate, which flipped to Republican control this week, boosting the chances the nomination would be confirmed in the upper chamber.

The SEC declined to comment on the ASA's statement.

A number of political figures, both in and outside of the crypto world, have called for Gensler's removal in recent years.

Sen. Warren Davidson (R-Ohio) and House Majority Whip Tom Emmer (R-Minn.), for example, introduced a measure last year aimed at restructuring the SEC and the removal of Gensler, whom Davidson called "tyrannical."

Their proposed measure sought to take away some of the discretion a SEC chair holds and prevent a single political party from holding more than three commissioner seats at any given time.

Iacovella's statement is a notable shift from 2021, when he supported Gensler's nomination and called him "a person of immense intellectual acumen" who is "also pragmatic, reasonable, and open to listening to all points of view as he develops policy."

The Hill reached out to Iacovella for further comment.

Gensler was appointed at the beginning of President Biden's term in February 2021.