"Crypto Enemy" Gensler to be nominated as Treasury Secretary? Political hype OR election strategy?

Original source: Matthew Foldi X account

Author: Matthew Foldi

Compilation: Azuma, Odaily Planet Daily

Editor's note: Last month, as the calls for Trump's election peaked due to a shooting incident, speculation about the imminent departure of Gary Gensler, the current chairman of the SEC and "public enemy number one" of cryptocurrency, also increased.

However, with Harris replacing Biden as the Democratic presidential candidate, her chances of winning have gradually risen over the past month, even recently overshadowing Trump. Meanwhile, Gensler's political career seems to be approaching a "turning point." On August 19, U.S. local time, the internet media Washington Reporter, which focuses on the political landscape in Washington, reported that if Harris wins, Gensler could be nominated as the U.S. Secretary of the Treasury.

Below is the original content from Washington Reporter:

Original Content from Washington Reporter

Although SEC Chairman Gary Gensler has publicly stated that he does not wish to leave his current position, several senior Senate staffers have revealed to Washington Reporter that if Vice President Kamala Harris wins the presidential election in November, she plans to nominate Gensler as the new Secretary of the Treasury. This rumor has been confirmed by several prominent Republican figures.

In an interview with Washington Reporter, Minnesota Republican Congressman Tom Emmer warned that Harris might choose Gensler or Massachusetts Democratic Senator Elizabeth Warren to serve as her Secretary of the Treasury. Emmer cautioned that this decision would be a disaster for the economy.

Emmer stated, "Gensler has been involved in lawsuits everywhere and has lost repeatedly. That era is over; Gensler needs to look forward, and his government career needs to end."

Senior Republican Senate staffers predict that if Harris wins, Gensler will face "full Republican opposition," but he is likely to rely on broad Democratic support to ascend. Two potential votes in favor of Gensler come from Michigan Democratic Congresswoman Elissa Slotkin and Arizona Democratic Congressman Ruben Gallego—ironically, they have received millions of dollars from the pro-cryptocurrency PAC Fairshake.

Note: Earlier this month, the Republican Party expressed strong dissatisfaction with Fairshake for supporting anti-cryptocurrency Democratic candidates in key Senate races. The organization backed Gallego and Slotkin in Arizona and Michigan, prompting Republican candidates Kari Lake and Mike Rogers to protest, arguing that this would undermine the Republican Party's relationship with the cryptocurrency industry and questioning Fairshake's motives.

Slotkin and Gallego have both taken anti-cryptocurrency actions in Congress, but neither has directly responded to inquiries about whether they would vote to support Gensler, while Republicans are expected to obstruct Gensler's nomination process.

In addition to the possibility of serving as Secretary of the Treasury in Harris's cabinet, there are rumors that Gensler may resign from his position as SEC chairman, allowing Biden to nominate a new chairman before the November election.

Katie Biber, Chief Legal Officer of Paradigm, described this possibility as the so-called "Gensler plan," which would ensure that Democrats hold a majority on the SEC, even if Trump wins and chooses to fire Gensler. Under this plan, Gensler would become a regular commissioner, and Biden could appoint a new successor during his presidency, such as Caroline Crenshaw—who has previously expressed hostility toward the cryptocurrency industry.

Note: The "Gensler plan" can essentially be understood as a defensive strategy for the Democrats at this pivotal point of power within the SEC, ensuring that Democrats maintain a majority on the SEC until 2025, even if the Republicans win the presidential election.

A congressional source familiar with SEC matters told Washington Reporter that the likelihood of the "Gensler plan" is low, but not impossible. The only possibility for Gensler to agree to this plan is if Harris has promised to appoint him as Secretary of the Treasury upon winning.

Results of Multiple Verifications

Washington Reporter's report has caused a stir in the cryptocurrency community. Following the release of the report, several media outlets and professionals have sought verification or analysis based on their own sources.

Caitlyn Long, CEO of Custodia Bank, stated on social media that several Democrats have responded to her, indicating that the rumor (Gensler's nomination as Secretary of the Treasury) is false. Long also mentioned that one Democrat even believes the source of the rumor is Gensler himself, suggesting it is merely his political strategy.

Additionally, Bloomberg ETF analyst Eric Balchunas commented that while Gensler did indeed serve as Secretary of the Treasury in the Clinton administration, he still believes this is entirely a fabricated rumor.

Balchunas believes the origin of this matter is the previously mentioned Republican Congressman Emmer: "If you are a Republican and want to help solidify votes from the cryptocurrency community, it's hard to think of anything more terrifying than Gensler gaining more power. Even if this isn't true, it is still very damaging."