SEC Enforcement Director Gurbir S. Grewal Steps Down

Securities and Exchange Commission (SEC) Enforcement Director Gurbir S. Grewal will leave the agency after 21 years, as announced on Wednesday. Sanjay Wadhwa, the division’s deputy director, will take over as temporary acting director, while Chief Counsel Sam Waldon will serve as acting deputy director.

> “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,” said SEC Chair Gary Gensler in a statement.

Grewal has served under Gensler as enforcement director for three years and will officially step down on October 11.

As the top cop of the securities watchdog, Grewal instituted numerous enforcement actions against notable U.S.-based cryptocurrency companies, including Coinbase, Kraken, and Ripple Labs, along with international firms such as Binance. Throughout his tenure, the SEC initiated over 100 enforcement actions aimed specifically at crypto firms.

Participants in the crypto industry have often expressed skepticism about the SEC’s approach, perceiving it as “regulation by enforcement” rather than providing clear guidance. The agency has faced criticism for broadly asserting that all crypto tokens are securities, which has been contested by lawmakers and partially rejected in various court cases.

In total, including actions against non-crypto entities, Grewal authorized around 2,400 enforcement matters, securing more than $20 billion in disgorgement, prejudgment interest, and civil penalties for the consistently underfunded agency. Additionally, over $1 billion has been awarded in whistleblower rewards.

Bill Hughes, Senior Counsel and Director of Global Regulatory Matters at Consensys, dismissed growing speculation on Crypto Twitter linking Grewal’s departure 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,” Hughes remarked, noting the SEC's fiscal year ended just two days earlier.

Gensler’s term is set to expire on June 5, 2026.