Rumors of a ‘Gensler Plan’ Swirl, Supporting SEC Chairman’s Move to Treasury Under Admin Harris

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Unconfirmed reports have surfaced recently suggesting that Vice President Kamala Harris may nominate SEC Chairman Gary Gensler as Treasury Secretary if she wins the November election. The sources cited are senior Senate staff and Republican sources.

According to an initial report from the Washington Reporter, several senior Senate staffers said Harris was considering Gensler for the Treasury role in a potential administration. That aligns with previous warnings from top Republicans, including Rep. Tom Emmer (R., Minn.), who have warned against such a move.

Emmer criticized Gensler’s performance at the SEC, stating:

“He brought lawsuits everywhere — and lost everywhere. That time has passed. Gary Gensler needs to move on. His career in government should end.”

Senate Republican staff anticipate unified opposition to Gensler’s potential nomination, but he could secure broad Democratic support. Two possible 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 Trustee Harris

Another scenario discussed involves Gensler stepping down as SEC chairman before the November election, allowing President Biden to nominate a new chairman. Katie Biber, chief legal officer of crypto investment firm Paradigm, suggested a “Gensler plan” in which the infamous regulator could return to the role of commissioner, allowing Biden to name a successor like Caroline Crenshaw.

That potential move could “secure a Dem majority in 2025 — forcing a President-elect Trump to impeach him,” according to Biber. However, a Hill source who works on SEC issues believes Gensler would agree to such a plan only if Harris promised him the job of Treasury secretary in her administration.

These rumors surface 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 former head of the crypto and cybersecurity enforcement division, has gone into private practice after years of leading the SEC’s crackdown on US crypto firms.

The potential nomination of Gary Gensler as Treasury Secretary under a Harris administration could have a significant impact on crypto regulation given his history of strict oversight at the SEC. His appointment could lead to stricter policies and enforcement actions against crypto firms, potentially reshaping the regulatory landscape.

In fact, the crypto industry may face increased regulatory and compliance requirements, which could affect innovation and growth in the sector, but could also lead to greater mainstream acceptance if, and perhaps only if, more stringent rules are put in place. clear

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