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Gensler's potential Treasury role sparks bipartisan debate and crypto regulation concerns.
Key Takeaways
Kamala Harris may nominate SEC Chairman Gary Gensler as Treasury Secretary if elected. Gensler's nomination could face strong opposition from Republicans and support from pro-crypto Democrats. <?xml encoding="UTF-8"?>Unconfirmed reports recently surfaced to suggest that Vice President Kamala Harris may nominate SEC Chairman Gary Gensler as Treasury Secretary if she wins the November election. The sources mentioned are senior Senate staffers and Republican sources.
According to an initial report from Washington Reporter, multiple senior Senate staffers have stated that Harris is considering Gensler for the Treasury role in a potential administration. This aligns with previous warnings from top Republicans, including Rep. Tom Emmer (R., Minn.), who cautioned against such a move.
Emmer criticized Gensler’s performance 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.”
Republican Senate staff anticipate unified opposition to Gensler’s potential nomination, but he may secure broad Democratic support. Two potential confirmation votes could come from Reps. Elissa Slotkin (D., Mich.) and Ruben Gallego (D., Ariz.), who have received significant funding from Fairshake PAC, a pro-cryptocurrency group. Interestingly, both representatives have maintained anti-cryptocurrency voting records in Congress.
Possible ‘Gensler plan’ under Harris admin
Another scenario being discussed involves Gensler stepping down as SEC chairman before the November election, allowing President Biden to nominate a new chair. Katie Biber, chief legal officer of crypto investment firm Paradigm, suggested a “Gensler plan” in which the infamous regulator could revert to serving as a commissioner, enabling Biden to appoint a successor like Caroline Crenshaw.
This potential move could “ensure a Dem Commission majority in 2025 — forcing a newly-elected President Trump to oust him,” according to Biber. However, a Hill source working on SEC issues believes Gensler would only agree to such a plan if Harris promised him the Treasury Secretary position in her administration.
These rumors are surfacing as Crypto Briefing recently reported that several US federal agencies, including the US Treasury, are collaborating to revise the definition of “money” to strengthen reporting requirements for financial institutions handling crypto transactions. In a related development, David Hirsch, the SEC’s former crypto and cybersecurity enforcement chief has moved to private practice, after years of leading the SEC’s attacks against crypto firms in the US.
Gary Gensler’s potential nomination as Treasury Secretary under a Harris administration could significantly impact crypto regulation, given his history of strict oversight at the SEC. His appointment could lead to more stringent policies and enforcement actions against crypto firms, potentially reshaping the regulatory landscape.
In effect, the crypto industry may face increased scrutiny and compliance requirements, which could affect innovation and growth in the sector, but might also lead to greater mainstream acceptance if, and perhaps only if, clearer rules are established.
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