On the heels of Chair Gary Gensler’s announcement of his departure on January 20, SEC Commissioner Jaime Lizárraga has issued a statement announcing his departure, effective January 17, 2025. The statement indicates that he is leaving as a result of his wife’s serious illness. I’m sure everyone wishes her well.
In addition to expressing his gratitude to those with whom he has worked, both at the SEC and previously—he formerly served as a Senior Advisor to then-House Speaker Nancy Pelosi—Lizárraga stated that he was “proud of all that we have accomplished and for doing my part, with the support of the agency’s staff, in advancing Chair Gensler’s agenda and in fulfilling the SEC’s mission. The work of the SEC is vital to the health of our capital markets, to the investing public, and to the future of our country. U.S. capital markets are the deepest, fairest, most transparent and most liquid in the world. The SEC’s robust implementation of the federal securities laws makes it possible for the innovative spirit, ingenuity and entrepreneurship of our country to thrive in our capital markets.”
With Gensler and Lizárraga bowing out, Caroline Crenshaw remains the only Democrat serving as a commissioner. Yahoo Finance reminds us that Crenshaw’s term “has already expired, putting her into an extension that can last as long as about 18 months.” As you know, Crenshaw serves on the five-member SEC alongside Republicans Hester Peirce and Mark Uyeda. According to Bloomberg, “the Republicans likely will need Crenshaw’s support to adopt new rules or scrap existing ones, even with a majority. SEC quorum rules dictate that a three-member commission can only advance a regulation if all the commissioners participate in a vote to do so, unless there’s a recusal or disqualification. Adding a third Republican to the commission would ease efforts to approve regulations without Crenshaw’s backing. But a new commissioner traditionally needs Senate confirmation before taking office.”
