We all know Gary Gensler has a bit of a reputation for being tough, especially when it comes to the crypto sector. As the current chair of the Securities and Exchange Commission (SEC), he's been making quite a furor in regulatory circles. Critics aren't shy about saying that his "regulation by enforcement" approach is more like innovation suffocation.
More: Gensler’s Potential Departure Promises a Bright Future for Crypto
Now, picture this: you're in the middle of a nightmare where Gary Gensler isn't just the SEC chair but has leveled up to become the U.S. Treasury Secretary — a role with power that rivals that of the country's chief financial officer. You wake up in a cold sweat, only to realize it wasn't just a bad dream. And no, we're not just telling you spooky bedtime stories; this is a very plausible scenario, especially if Kamala Harris clinches the win in November.
Gensler Could Step Down for a Bigger Role
Although SEC Chair Gary Gensler hasn't publicly hinted at leaving his current position, several high-ranking Senate staffers have said that if Vice President Kamala Harris wins in November, she plans to appoint Gensler as her Treasury Secretary.
In this scenario, top Republican Senate officials predict "united Republican opposition" to Gensler, but he’ll likely enjoy strong Democratic backing. Gensler has considerable support among them, with key votes expected from Representatives Elissa Slotkin (D., Mich.) and Ruben Gallego (D., Ariz.), both known for their anti-crypto stances.
Rumors are swirling that Gensler might step down from the SEC to allow President Joe Biden to appoint a successor who would maintain a Democratic majority in the Commission for the next term. Katie Biber, CLO of the crypto-linked investment firm Paradigm, has floated the idea of a "Gensler Plan," which would "ensure a Democratic majority on the Commission in 2025 — forcing the newly elected President Trump to remove him from office."
According to this theory, Gensler could return to work as a commissioner, with Biden possibly appointing a successor like Caroline Crenshaw, whose hostility toward the crypto industry has been widely discussed.
Rumors Sparks Panic
The crypto community is, unsurprisingly, in a state of panic over the rumors of Gensler's promotion.
Ryan Adams, founder of Bankless said:
"If this is true, it could spell the end of crypto in the U.S., and we might as well pack our bags and leave the country right now,"
Update: people in the know tell me this is very unlikely to be true.
— RYAN SΞAN ADAMS - rsa.eth 🦄 (@RyanSAdams) August 19, 2024
That said, since we have nothing from Kamala telling us she wouldn't nominate a Gary we can't entirely rule it out. There's been ample opportunity to extend an olive branch to crypto...they've given nothing.
"Still, since we haven't heard anything from Kamala indicating she won’t nominate Gary, we can't rule it out entirely. There have been plenty of chances to extend an olive branch to crypto... and nothing has come of it," Adams explained.
Similar concerns have been openly voiced by Congressman Tom Emmer (R., Minn.). In an interview, Emmer warned that Harris might pick Gensler — or even Senator Elizabeth Warren (D., Mass.) — as Treasury Secretary, calling such a move a disaster for the economy.
"Gensler is filing lawsuits left and right — and losing. His time is up. Gary Gensler needs to move on. His government career should be over," Emmer told.
However, some are skeptical of these rumors. Caitlin Long, founder of Custodian Bank, pointed out reassurances from several Democratic leaders that the rumors are baseless.
OK, multiple Dems contacted me to say the “Gensler as Treasury Secretary” rumor is false. One thinks the source of the rumor is Gensler himself — (thinks he planted it just to mess with all of us…that sounds about right TBH)🤷♀️ https://t.co/nTRwq1Gafu
— Caitlin Long 🔑⚡️🟠 (@CaitlinLong_) August 19, 2024
Still, the lack of a clear denial from the Harris camp leaves room for ongoing speculation and concern.
HODL Team
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