Key Insights:
- Crypto leaders, including Caitlin Long, believe Gary Gensler himself may have sparked rumors about a potential Treasury Secretary role.
- The alleged “Gensler plan” hints at a Democratic strategy to maintain SEC control, sparking debate across political and crypto circles.
- Industry voices express skepticism, warning of potential continued regulatory pressure if Gensler transitions to the Treasury Department.
Rumors surrounding SEC Chair Gary Gensler’s potential appointment as Treasury Secretary under a hypothetical Kamala Harris presidency have created a stir within the cryptocurrency industry.
However, Custodia Bank CEO Caitlin Long has expressed skepticism over these reports, suggesting that Gensler himself may be the origin of these rumors. The speculation, which has spread across political and financial circles, has prompted mixed reactions from both supporters and critics of Gensler’s tenure as SEC Chair.
Origins of the Gensler Treasury Secretary Speculation
The rumors of Gary Gensler’s possible nomination for the Treasury Secretary role originated from a report by Washington Reporter journalist Matthew Foldi. Foldi referenced information provided by Paradigm Chief Legal Officer Katie Biber, who had mentioned a possible “Gensler plan.” This plan reportedly involved Gensler positioning himself to ensure a Democratic majority in the SEC in 2025.
According to Foldi’s sources, this strategy would require Gensler to step down as SEC Chair while securing a role as Treasury Secretary under a Kamala Harris administration, should she be elected president.
This alleged plan would also allow President Joe Biden to appoint a successor more hostile to the crypto industry, like current SEC Commissioner Caroline Crenshaw. Crenshaw’s reputation for a tough stance on cryptocurrency has raised concerns among industry leaders, as this could continue the regulatory challenges faced by the sector, even after Gensler steps down.
Caitlin Long and Other Leaders Question Credibility
Caitlin Long, CEO of Custodia Bank and a prominent voice in the cryptocurrency space, has challenged the validity of these rumors. Long took to social media platform X, formerly known as Twitter, to express doubts about the information. She shared that multiple Democratic sources had contacted her to debunk the rumors, further stating her belief that Gensler himself may have planted the speculation for personal or political gain.
Long’s perspective was echoed by Sheila Warren, CEO of the Crypto Council for Innovation. Warren also took to X to express her doubts, noting that she had heard from multiple Republican sources that the rumors lacked credibility. This bipartisan pushback against the speculation suggests that the claims may have little factual basis, further fueling uncertainty in the crypto industry about the future of Gensler’s role in government.
Political Reaction and Criticism of Gensler’s SEC Leadership
The rumors surrounding Gensler’s potential Treasury Secretary role have also sparked criticism from some political figures. Representative Tom Emmer, a vocal critic of Gensler’s performance as SEC Chair, has previously warned that Kamala Harris might consider Gensler or Senator Elizabeth Warren for the Treasury Secretary position. Emmer has frequently criticized Gensler’s handling of cryptocurrency regulation, arguing that his frequent lawsuits against crypto companies have been largely unsuccessful. Emmer has also called for Gensler to step down from his current role, claiming that his tenure has harmed innovation and created uncertainty within the crypto market.
Meanwhile, Bloomberg Senior ETF analyst Eric Balchunas has drawn attention to Emmer’s stance, even suggesting that Gensler could be the source of the rumors. Balchunas’s comments align with the statements from Custodia Bank CEO Caitlin Long, further contributing to the theory that Gensler may have played a role in the dissemination of the speculation.
Industry Reactions Reflect Broader Skepticism
The cryptocurrency industry has reacted with concern and skepticism to the prospect of Gensler becoming Treasury Secretary. Ripple’s Chief Technology Officer David Schwartz responded to the rumors with sarcasm, posting on X that Gensler might be removed from his role as SEC Chair if Harris were elected.
Schwartz’s comment reflects the broader frustrations within the crypto community regarding Gensler’s approach to regulation, particularly following Ripple’s legal settlement with the SEC, which included a $125 million penalty.
Other industry figures, such as Cardano founder Charles Hoskinson, have expressed deeper concerns about the Democratic Party’s relationship with the crypto sector. Hoskinson has repeatedly emphasized that “team blue is not Crypto’s friend,” highlighting a growing rift between the industry and Democratic leadership over regulatory policy.
Attorney Bill Morgan, a known proponent of XRP, also criticized the idea of Gensler taking on the Treasury Secretary role, calling those who view Harris as a crypto ally “useful idiots.” Morgan warned that Gensler’s influence over the Treasury could further damage the industry.
SureTradeGroup.com is not responsible for the content, accuracy, quality, advertising, products or any other content posted on the site. Some of the content on this site is paid content that is not written or posted by our writers or editors and the opinions expressed do not reflect the opinions of this website. Any disagreement you may have with brands or companies mentioned in articles will need to be taken care of directly with those specific brands and companies. The responsibility of anyone who may click links in our articles and ultimately sign up for that product or service is their own. Forex, Stocks, Cryptocurrencies, NFTs and Dogital Tokens are all a high-risk asset, investing in them can lead to losses. Readers should do their own research before taking any action.