Nov 22 (Reuters) - A Democratic member of the

five-person U.S. Securities and Exchange Commission said on

Friday he will step down more than two years early, leaving just

two Republicans and one Democrat in place from the start of

President-elect Donald Trump's administration in January.

Commissioner Jaime Lizarraga, a former aide to former House

Speaker Nancy Pelosi who in 2022 was confirmed to a five-year

SEC term, cited his wife's poor health in announcing his

decision.

The news comes a day after SEC Chair Gary Gensler announced

he would leave the commission on Jan. 20, the day of Trump's

scheduled inauguration.

In a statement, Gensler praised Lizarraga, saying that the

two had worked together in different roles stretching back more

than a decade.

"At the SEC, he has been an excellent partner in our work to

protect investors, facilitate capital formation, and ensure

markets work for investors and issuers alike," Gensler said.

Trump has yet to announce a nominee to replace Gensler, with

Robinhood Markets' Chief Legal Officer Dan Gallagher bowing out

on Friday.

With Lizarraga's departure, Republicans will outnumber

Democrats on the commission from day one of the new Trump

administration, likely boosting their ability to begin a sharply

different course on policy matters such as regulating

cryptocurrency and pursuing enforcement cases.

During his campaign, Trump largely adopted the crypto

industry's grievances against Gensler, whom he had vowed to

fire. Gensler has rejected calls to adopt new rules specifically

for the digital assets.