A second Democrat is preparing to leave the U.S. Securities and Exchange Commission early as President-elect Donald Trump prepares to return to the White House.

Jaime E.Lizárrag U.S. Securities and Exchange Commission Exiting Commissioner

On Friday, Jaime Lizárraga revealed that he plans to cut his time as SEC commissioner short next year. Lizárraga says he will step down on January 17, 2025; that's three days before inauguration day, which is also when SEC chair Gary Gensler says he'll exit, as previously reported. (Lizárraga's term is not set to expire until June 5, 2027.)

The upcoming exits of Lizárraga and Gensler mean that there might be four open SEC comissioner seats (out of five total) for Trump to try to fill in 2025: two Democrats, one Republican, and one chair (presumably also a Republican). Of the five current commissioners, Gensler (D, chair) and Lizárraga (D) both say they plan to leave before Trump takes over. The commission's 3rd Democrat, Caroline Crenshaw, is already serving beyond her term, which ended in June; SEC commissioners can serve up to 18 months after their terms end, meaning she would need to exit (or be reappointed) by December 5, 2025. And the term of Republican Hester Peirce is set to expire on June 5, 2025 ... though Trump could potentially keep her on past her term's end, until December 5, 2026 at the latest, if he doesn't reappoint her.

Lizárraga says that leaving the regulatory agency "is in the best interests" of his family.

"For the better part of this year, my wife, Kelly, has confronted serious illness with admirable courage and a strong spirit," Lizárraga states. "We are grateful for the support of colleagues, friends and family and are hopeful for her speedy and full recovery in the ensuing months."

Lizárraga was sworn in as an SEC commissioner on July 18, 2022, after being confirmed by the Senate on June 16 of that year. Since then, he has supported new money market fund regulations (also supported by the SEC's other two Democrats but opposed by the two Republican commissioners).

"I am 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," Lizárraga states. "My thanks to Chair Gary Gensler for welcoming me at the Commission. His leadership at the helm of the agency and his pursuit of excellence have been nothing short of exceptional."

Lizárraga also thanks. the three other SEC commissioners. And he offers his deepest gratitude to his own "talented team of counsels — Laura D’Allaird, Parisa Haghshenas, Brandon Hill, Diem-Mi Lu, and Kathryn Steinberg."

" I pushed them to the limit to meet the highest possible standards of excellence in all of our work," Lizárraga states. "By all measures, they delivered. Thank you! I will always be grateful."

Before becoming an SEC commissioner, Lizárraga was himself an SEC staffer in the 1990s, and as a U.S. Treasury appointee. He also worked on Capitol Hill, serving as a senior advisor to Representative Nancy Pelosi, former Speaker of the House. He isa n alumnus of the Lyndon B. Johnson School of Public Affairs at the University of Texas at Austin and of the University of California, San Diego. 

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