Top SEC enforcement official Gurbir S. Grewal steps down

Securities and Exchange Commission Enforcement Director Gurbir S. Grewal is leaving the agency after 21 years, according to an announcement on Wednesday. Sanjay Wadhwa, the division’s deputy director, will step up as temporary acting director and 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,” SEC Chair Gary Gensler said in a statement. 

Grewal, who served under Gensler as enforcement director for three years, will step down officially on Oct. 11. 

As the security watchdog’s top cop, Grewal filed enforcement actions against several of the most prominent U.S.-based crypto companies, including Coinbase , Kraken and Ripple Labs , as well as countless international entities like Binance. Under Grewal’s tenure, the agency authorized more than 100 enforcement actions specifically against crypto firms. 

Crypto industry participants are commonly skeptical of the SEC’s approach towards crypto, often describing the matter as “regulation by enforcement” rather than clear guidance. In particular, the SEC has been criticized for the sweeping claim that all crypto tokens are securities, a point that has been challenged by lawmakers and partially dismissed in several court cases.

In total, including legal action against non-crypto firms, Grewal authorized 2,400 enforcement matters, bringing in more than $20 billion in disgorgement, prejudgment interest and civil penalties to the perenially underfunded agency. It also awarded over $1 billion in whistleblower awards.

Senior Counsel and Director of Global Regulatory Matters at Consensys Bill Hughes downplayed speculation growing on Crypto Twitter that the departure is somehow connected to crypto. 

“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 said, noting that the SEC’s fiscal year ended two days ago.

Noted crypto skeptic Gensler's term is set to expire on June 5, 2026.