The SEC previously  that Chair Gary Gensler will step down from the SEC effective at 12:00 pm on January 20, 2025. (See .)

Commissioner Lizárraga's resignation means that there will be a Republican majority at the SEC from the first day of the new President's term. Accordingly, the SEC can get right to work on rulemaking, or potentially rule repeals, without being caught in a 2-2 stalemate.  

The first indication that the SEC, under Chair Gensler, was to take an extremely expansive regulatory position (about most everything) was the SEC's declaration that SEA Rule 15c2-11 would apply to debt securities.

For over fifty years the Rule—adopted in 1971—had been only applied to equities. When issuing the new guidance, the SEC gave no consideration to the differences between the equity markets and the debt markets. The SEC largely ignored protestations from issuers,…

This is the second major loss for the SEC in the last several months that has resulted in a finding that the SEC exceeded its authority. (See ""). As a result, another major rulemaking effort must be vacated in full. Still to come, challenges to rulemaking efforts related to securities lending, short selling and greenhouse gas disclosures. If the SEC does not lose these cases in court, they are likely to be overturned by the next Congress.

Notably, these judicial findings follow other…

The SEC must now turn its immediate attention to the question of how to regulate cryptocurrencies. The SEC's greatest shortcoming under Chair Gensler have been the failure to devote resources to the development of workable regulation (and legislation) on cryptocurrencies.

The incoming Administration has committed to stopping the enforcement onslaught against virtually every participant in the crypto industry. That should bring significant relief, at least to those not engaged in…