Vice President Kamala Harris is considering nominating SEC chair Gary Gensler as Treasury Secretary under her administration if elected president, the Washington Reporter reported on Aug. 19, citing “multiple senior Senate staffers.”
While Gensler has not publicly expressed interest in leaving his current role, sources indicate that discussions are ongoing, and the possibility of his nomination is gaining traction.
Gensler as Treasury Secretary
According to the report, the nomination is likely to face unified Republican opposition; however, Gensler can count on broad Democratic support, including Representatives Elissa Slotkin and Ruben Gallego.
Notably, both Gallego and Slotkin were recently backed by pro-crypto political action committee (PAC) Fairshake PAC. Republicans have criticized the move, calling it a “betrayal” of their perceived alliance with the crypto industry.
Meanwhile, one insider familiar with SEC operations suggested that Gensler might only agree to step down if Harris guarantees him the Treasury Secretary position in her administration. This plan remains speculative, but it highlights the complex political maneuvering that could shape the future of US financial regulation.
There is also speculation that Gensler may step down as SEC Chairman ahead of the November election, potentially allowing President Joe Biden to nominate a new chair. Katie Biber, Chief Legal Officer of Paradigm, a crypto investment firm, mentioned a possible “Gensler plan” in which Gensler would step down but remain on the SEC as a commissioner.
This move could ensure a Democratic majority on the Commission going into 2025, even if a Republican wins the presidency. Under this scenario, Biden could appoint a successor like SEC Commissioner Caroline Crenshaw, known for her strong stance against the crypto industry.
However, some in the industry claim the rumors are unfounded, and such a nomination is unlikely to go through. Custodia Bank CEO Caitlyn Long said on social media that “multiple” Democrats had reached out to say the rumor was false. She added:
“One [Democrat] thinks the source of the rumor is Gensler himself — (thinks he planted it just to mess with all of us… that sounds about right, TBH).”
Bitcoin, crypto missing from DNC platform
The report follows the Democratic Party’s publication of its new campaign platform on Aug. 19, the first day of the Democratic National Convention. The platform notably does not contain any mentions of Bitcoin (BTC), crypto or blockchain in the 92-page document.
Despite the recently launched “Crypto4Harris” in an effort to gather support from the crypto community voters towards Harris, the Democrat representative has not publicly mentioned her intentions toward the industry so far.
The lack of mention has disappointed many in the industry and further cemented the views held by skeptics, who believe the Democrat party and Harris will continue to uphold Biden’s strict approach toward the industry.
Bankless co-founder Ryan Sean Adams said that the document’s lack of a crypto mention “feels like spit on the face.”
Meanwhile, Senator Bill Hagerty told Fox Business reporter Eleanor Terret:
“Democrats have been trying to have it both ways — paying campaign-season lip service to crypto while maintaining their hostility toward this groundbreaking technology.”
