Is Gary Gensler a Possible Choice for Treasury Secretary if Kamala Harris Takes Office?

• Rumors of Gary Gensler’s potential nomination as Treasury Secretary sparks mixed reactions from the crypto community.
• Gensler’s track record on crypto is marked by hostile enforcement actions and a lack of regulatory clarity.
• Gensler’s approach to crypto may not differ significantly from Janet Yellen’s, who has also advocated for strict regulations.

Rumors have emerged that Kamala Harris is reportedly planning to nominate current Securities and Exchange Commission (SEC) chief Gary Gensler for the Treasury Secretary role.

The Treasury Secretary serves on the President’s National Economic Council and is responsible for formulating and recommending financial, economic, and tax policies.

Gensler Gets Democrat’s Support?

Gensler’s rumored hypothetical promotion promise comes just days after former U.S. President Donald Trump promised to fire the SEC chief if he wins the election.

As reported  by the Washington Reporter, sources close to the Senate indicate that Gensler has allegedly gained crucial support from two key lawmakers, Reps. Elissa Slotkin and Ruben Gallego, who could cast deciding votes in his favor for the Treasury Secretary role.

Both Democrats have established a track record of backing pro-crypto legislation in Congress, voting in favor of FIT21 and other pro-crypto legislation. They have also received significant financial backing from Fairshake PAC, a prominent pro-crypto political action committee.

Slotkin’s pro-crypto stance earned her an “A” rating from Stand with Crypto, a nonprofit crypto advocacy group. Gallego, meanwhile, has built a reputation as a strong supporter of the industry.

Apart from the unnamed Senate sources, the source noted that many Republican lawmakers, including Tom Emmer, have also reportedly cautioned about the possibility of Gensler being nominated as the Treasury Secretary if Harris wins the Presidential elections.

Is the News Legitimate?

The source suggesting that Gensler might be nominated as the next Treasury Secretary has sparked heated debates within the crypto community.

However, it’s worth noting that Gensler still has two years remaining in his five-year term as SEC chief.

Many have questioned the accuracy of the report and sources.

Reps. Elissa Slotkin and Ruben Gallego, the two Democrats allegedly backing Gensler’s nomination, have not publicly commented on the report and have yet to respond to requests for confirmation.

Still, the news has elicited strong reactions from the crypto community, with some expressing concerns about the implications for the industry. Some have speculated that Gensler’s appointment could lead to increased regulation and potentially hinder the growth of the American crypto industry.

Crypto investor Ryan Adams said  this would “basically end crypto in the U.S., and we might as well flee the country now.”

Gensler’s Potential Treasury Secretary Role Could “End” Crypto in The US 

Gensler is notorious for being among the most controversial SEC chiefs due to his regulation-by-enforcement approach to the crypto industry.

During his tenure as the SEC chief, he infamously brought lawsuits against multiple major companies at the peak of their popularity, including Ripple, Kraken, Coinbase, and several others.

However, in most cases, the lawsuit was either dismissed by the court or withdrawn by the SEC.

The SEC’s hostile approach towards crypto has forced several successful companies to curtail their businesses or relocate.

While the SEC claims to work with crypto companies to help them comply with the law, crypto firms have called out the SEC for its lack of regulatory clarity.

While the crypto industry is abuzz with speculation about Gensler’s potential impact as Treasury Secretary, the bigger question is how his vision for the role would differ from that of current Secretary Janet Yellen — not much.

Janet Yellen vs Gary Gensler

Janet Yellen is infamous for advocating for strict crypto regulations while warning about cryptocurrency risks.

The crypto community often criticizes her for her regressive stance and fear-mongering instead of working towards building a progressive crypto economy in the U.S.

Yellen has repeatedly called upon lawmakers to establish strict crypto regulations and demanded clarity on stablecoin legislation.

Over the years, the Treasury Secretary has built a public image similar to Gensler regarding cryptocurrency. Both Yellen and Gensler have faced public criticism for their anit-crypto approach.

Leading crypto companies, including Ripple and Coinbase, have questioned the SEC and Yellen for their contradictory views on crypto. Thus, if rumors of potential nominations for Gary Gensler are accurate, the U.S. might have another Treasury Secretary with a regressive crypto stance.

About the Author

Prashant Jha

Prashant Jha is a crypto-journalist focused on the US and UK markets, his interests lie in blockchain technology and crypto adoption across emerging economies.

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