On Jan. 18, the Biden administration announced the nomination of Gary Gensler as the next chairman of the U.S. Securities and Exchange Commission (the SEC). Gensler succeeds Jay Clayton, a prominent Wall Street lawyer who reduced regulation of the financial services sector and was generally perceived to be a friend of the financial industry.

Gensler’s nomination has significant implications for the financial services firms. Gensler’s nomination has been well-received by progressive members of Congress, most notably Sen. Elizabeth Warren (D-MA), who has long been a staunch antagonist of Wall Street. Shortly following Gensler’s nomination, Warren tweeted that: