Regulation

Gary Gensler Started The ‘Treasury Secretary’ Rumor Himself

Published

1 month ago

August 20, 2024

Rumors swirling about SEC Chair Gary Gensler potentially becoming Treasury Secretary if Kamala Harris wins the 2024 presidential election have stirred significant debate within the crypto industry. However, Custodia Bank CEO Caitlin Long debunked these claims. Moreover, she believes that Gensler himself is the source of these rumors.

How ‘Gary Gensler As Treasury Secretary’ Rumors Started

The speculation originated from a Washington Reporter scoop by Matthew Foldi. In the reported, Foldi reiterated that Paradigm CLO Katie Biber had floated the notion of a “Gensler plan.” This plan would allegedly “ensure a Dem Commission majority in 2025 — forcing a newly-elected President Trump to oust him.”

It would position Gary Gensler to become an SEC commissioner once more. Moreover, it would enable President Biden to appoint a successor such as Caroline Crenshaw, known for her critical stance on the crypto industry. Hence, the SEC’s anti-crypto crusade would continue even if Gensler steps down.

The “Gensler plan” has generated a mix of intrigue and skepticism among industry figures and political commentators. The cause of the latest rumors is a Capitol Hill source familiar with SEC matters, as cited by Foldi. The source suggested that Gensler might agree to such a scenario if he were promised a role as Treasury Secretary by Kamala Harris if she wins.

Industry Leaders Debunk These Claims

These speculations didn’t sit well with the crypto industry that called for Harris to fire Gensler. Furthermore, Custodia Bank’s Long took to X and challenged the credibility of this rumor. She stated, “Multiple Dems contacted me to say the ‘Gensler as Treasury Secretary’ rumor is false.”

According to Long, a Democrat believes that Gensler himself is behind the rumor, either to create confusion or to manipulate perceptions. This assertion is supported by Sheila Warren, CEO of the Crypto Council, who echoed Long’s sentiments. Warren write on X, “I’ve heard this is false from multiple [Republicans] as well.” This bipartisan dismissal suggests that the rumor may lack substantive backing.

Rep. Tom Emmer had previously cautioned that Kamala Harris might choose Gensler as or Senator Elizabeth Warren for the Treasury Secretary position. Emmer criticized Gensler’s tenure at the SEC, stating:

“He’s been bringing lawsuits all over the place — and losing all over the place. That time’s past. Gary Gensler needs to move on. His career in government should be over.”

Bloomberg Senior ETF analyst Eric Balchunas spotlighted Emmer’s stance in a post on X. Moreover, Balchunas suggested, “It kinda sounds like he’s the source of the rumor.” This statement aligns with Custodia Bank CEO’s statement, solidifying the possibility of Gary Gensler starting the rumor himself.

Crypto Industry Reactions

Moreover, Ripple CTO David Schwartz took a more sarcastic tone in response to the rumors. On X, he wrote, “Good news, everyone! Sources say if Harris is elected, she will remove Gensler as chair of the SEC before his term is up!” Ripple recently reached the end of the legal tussle with the SEC with the former receiving a $125 million penalty.

Charles Hoskinson, founder of Cardano, weighed in with a critical perspective. He noted, “As I have repeatedly stated, team blue is not Crypto’s friend.” Hoskinson’s remark reflects broader skepticism within the crypto industry about the Democratic Party’s alignment with crypto interests.

Similarly, pro-XRP lawyer Bill Morgan condemned the idea, calling those who support Harris as a crypto ally “useful idiots.” He warned, “Imagine the damage he will do to crypto as Treasury Secretary. Where are the Democrats for Crypto crowd. Are they still having meetings with senior people from the Administration and being ‘listened’ to.”