Gurbir S. Grewal, the Securities and Exchange Commission (SEC) Enforcement Director, is officially resigning after 21 years of service.
According to an announcement made on Wednesday, Sanjay Wadhwa, the division’s deputy director, will assume the role of temporary acting director. Chief Counsel Sam Waldon will serve as the acting deputy director.
SEC Chair Gary Gensler remarked, “Every day, he has thought about how to best protect investors and help ensure market participants comply with our time-tested securities laws. He has led a Division that has acted without fear or favor, following the facts and the law wherever they may lead. I greatly enjoyed working with him and wish him well.”
Grewal has been a significant figure in the SEC's enforcement actions against major U.S.-based crypto companies, including Coinbase, Kraken, and Ripple Labs, along with international entities like Binance. In his three years as enforcement director, he authorized over 100 enforcement actions specifically targeting crypto firms.
The crypto industry often criticizes the SEC's approach, labeling it as “regulation by enforcement”, particularly regarding the claim that all crypto tokens are securities. This assertion has faced challenges from lawmakers and has been partially dismissed in various court cases.
During his tenure, Grewal oversaw a total of 2,400 enforcement matters, which resulted in more than $20 billion in disgorgement, prejudgment interest, and civil penalties for the underfunded agency. Additionally, over $1 billion was awarded in whistleblower rewards.
Bill Hughes, Senior Counsel and Director of Global Regulatory Matters at Consensys, downplayed speculation on Crypto Twitter suggesting Grewal's departure is connected to the crypto sector. “Sometimes you know when you are going to exit so you can take some time off before starting your big fancy new private sector job come 2025,” he said, noting the SEC’s fiscal year recently concluded.
Gensler’s term as SEC Chair is set to expire on June 5, 2026.
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