Gensler to Treasury? Rumours Swirl as Harris Eyes Election Win

Speculation is rife in Washington that Gary Gensler, the current Chair of the Securities and Exchange Commission (SEC), could be in line for a major promotion should Vice President Kamala Harris secure the presidency in the upcoming election.

Sources within the Senate have informed the Washington Reporter that Harris is likely to nominate Gensler as Treasury Secretary if she wins. This claim aligns with statements made by leading Republicans, who have also expressed their concerns about such a move.

Representative Tom Emmer (R-Minn.) has voiced his opposition to Gensler's potential nomination, arguing that it would be detrimental to the US economy. Emmer has criticised Gensler's record as SEC Chair, stating that his "lawsuits have been all over the place - and losing all over the place. That time's past. Gary Gensler needs to move on. His career in government should be over."

Should Harris become President, Republican Senate staff anticipate a concerted effort to oppose Gensler's nomination. However, he is likely to receive significant support from Democratic lawmakers.

The confirmation process may be particularly influenced by two representatives, Elissa Slotkin (D-Mich.) and Ruben Gallego (D-Ariz.), who have received substantial backing from Fairshake PAC, a pro-cryptocurrency group. Both Slotkin and Gallego have previously opposed cryptocurrency in Congress, and their stance on Gensler's nomination remains unclear.

Beyond the possibility of Gensler becoming Treasury Secretary, there are also rumours that he may step down as SEC Chair before the November election, potentially allowing President Joe Biden to appoint a new chair.

Katie Biber, Chief Legal Officer of the crypto-focused investment firm Paradigm, has suggested that Gensler might implement a strategy to ensure a Democratic majority on the SEC Commission in 2025. This could involve Gensler stepping back into a commissioner role, allowing Biden to appoint a successor like Caroline Crenshaw, known for her critical stance on the crypto industry.

While this scenario, dubbed the "Gensler plan," seems unlikely, it is not entirely impossible. A Hill source familiar with SEC affairs has stated that "the only way I see Gensler agreeing to that is if Harris promised if she wins they'll give him Treasury Secretary."

As these rumours continue to circulate, the upcoming Benzinga Future of Digital Assets event on 19 November could provide a platform for industry leaders and policymakers to discuss the potential implications of these developments on the future of digital assets and the broader financial landscape.