"Public Enemy of Crypto" Gensler Nominated for Treasury Secretary? Political Hype or Election Strategy?
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"Public Enemy of Crypto" Gensler Nominated for Treasury Secretary? Political Hype or Election Strategy?
What explosive revelations have emerged from Washington media, and how have multiple sources verified them?
Navigating Web3 tides with focused insightsAuthor: Matthew Foldi
Translation: Azuma, Odaily Planet Daily
Editor's Note: Last month, as speculation surrounding Donald Trump’s election prospects peaked following the assassination attempt, rumors intensified about the potential departure of Gary Gensler—the current Chair of the Securities and Exchange Commission (SEC) widely regarded as the crypto industry’s top adversary. However, with Kamala Harris replacing Joe Biden as the Democratic presidential candidate, her chances of winning have steadily increased over the past month, recently even surpassing those of Trump. At the same time, Gensler’s political career may also be approaching a turning point. On August 19, Washington Reporter, an online media outlet focused on Washington politics, reported that if Harris wins the presidency, Gensler could be nominated as U.S. Secretary of the Treasury.
Below is the original article from Washington Reporter, translated by Odaily Planet Daily.
Original Content from Washington Reporter
Although SEC Chair Gary Gensler has publicly stated he does not wish to leave his current position, multiple senior Senate staffers have told Washington Reporter that if Vice President Kamala Harris wins the November presidential election, she plans to nominate Gensler as the next Treasury Secretary. This rumor has already been confirmed on-the-record by several prominent Republican figures.
In an interview with Washington Reporter, Minnesota Republican Congressman Tom Emmer warned that Harris might choose either Gensler or Massachusetts Democratic Senator Elizabeth Warren as her Treasury Secretary. Emmer cautioned that such a decision would be disastrous for the economy.
Emmer said: "Gensler has been filing lawsuits everywhere and losing most of them. That era is over. Gensler needs to move forward—his government career should come to an end."
Senior Republican Senate sources predict that if Harris wins, Gensler will face "unified Republican opposition," but he could still secure confirmation through broad Democratic support. Two potential votes in favor could come from Michigan Democratic Representative Elissa Slotkin and Arizona Democratic Representative Ruben Gallego—ironically, both of whom received millions of dollars in funding from Fairshake, a pro-crypto Political Action Committee (PAC).
Odaily Planet Daily note: Earlier this month, American Republicans expressed strong dissatisfaction over Fairshake’s support for anti-crypto Democratic candidates in key Senate races. The group backed Gallego and Slotkin in Arizona and Michigan. Republican candidates Kari Lake and Mike Rogers protested this move, arguing it would damage the relationship between the Republican Party and the crypto industry and questioning Fairshake’s motives.
Both Slotkin and Gallego have records of anti-crypto actions in Congress, but neither has directly responded to inquiries about whether they would vote to support Gensler. Republicans anticipate they may attempt to block Gensler’s nomination process.
Besides the possibility of serving as Treasury Secretary in a Harris administration, there are also rumors that Gensler might resign from his role as SEC Chair, allowing President Biden to appoint a new chair before the November election.
Katie Biber, Chief Legal Officer at Paradigm, described this scenario as the so-called “Gensler Plan,” which would ensure Democratic control of the SEC majority even if Trump wins and subsequently fires Gensler. Under this plan, Gensler would step down to become an ordinary commissioner, while Biden could appoint a successor during his term—such as Caroline Crenshaw, who has previously expressed hostility toward the crypto industry.
Odaily Planet Daily note: The “Gensler Plan” can essentially be understood as a defensive strategy by Democrats to maintain control over the SEC, a critical regulatory hub. This maneuver would allow Democrats to retain a majority at the SEC until 2025, even if the Republicans win the presidency.
A congressional source familiar with SEC affairs told Washington Reporter that while the “Gensler Plan” is unlikely, it is not impossible. The only way Gensler might agree to such a plan is if Harris has privately promised to appoint him Treasury Secretary upon her victory.
Verification from Multiple Sources
The Washington Reporter story triggered significant upheaval within the cryptocurrency community. After its release, several media outlets and professionals conducted their own verification and analysis based on independent sources.
Caitlyn Long, CEO of Custodia Bank, stated on social media that multiple Democrats had informed her the rumor (that Gensler would be nominated Treasury Secretary) was false. Long added that one Democrat even suggested the rumor originated from Gensler himself, calling it a political tactic.
Additionally, Bloomberg ETF analyst Eric Balchunas commented that although Gensler did work under the Treasury Secretary in the Clinton administration, he still believes the entire story is fabricated.
Balchunas pointed to Republican Congressman Emmer mentioned earlier as the likely origin of the rumor: "If you’re a Republican trying to consolidate voter support from the crypto community, it’s hard to imagine anything more damaging than suggesting Gensler might gain even more power. Even if it’s not true, it’s politically potent."
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