The Harris administration is tipped to be lining up Gary Gensler of the SEC to replace Janet Yellen at the Treasury – is this the worst-case scenario for crypto?
Before the FTX debacle, the United States SEC was, without a doubt, watching crypto evolve. If anything, the agency had approved several Bitcoin Futures ETFs and was considering a spot Bitcoin ETF.
It had also fined several crypto players, citing non-compliance, and wanted even more monitoring and controls as they claimed manipulation, especially among exchanges, was rampant.
In all, United States critics lamented that the agency was anti-crypto, a situation made worse by a government that wasn’t, some argue, moving fast enough to enact supportive laws.
Fast-forward to 2024, and as former President Trump and Vice President Kamala Harris campaign, both appear to be leaning towards crypto, acknowledging the industry’s benefits.
Trump even gave the keynote address at a Bitcoin conference last month while Harris was thawing, saying she would support crypto and blockchain development.
However, as of yesterday, there were rumors that Gary Gensler, the current chair of the SEC, could be nominated as Treasury Secretary if Harris wins, taking over from Janet Yellen.
The Crypto Nightmare: Gary Gensler As Treasury Department Lead?
The chair has not announced his resignation or leaving his role as the industry’s watchdog.
For what’s there, Gensler, some prominent crypto figures, including Ripple CEO claim, is anti-crypto
Under his leadership, several firms, including exchanges like Kraken, Binance, and Coinbase, have been sued by the regulators level different charges, including enabling the trading of unregistered securities, money laundering, and violation of securities laws.
Binance had to pay billions of dollars to settle, costing Changpeng Zhao his role in the exchange. It also does not forget the four-month jail time.
After nearly four years, Ripple settled with the regulator, paying $125 million as a penalty.
The possibility of Gensler ascending to an even more powerful oversight position is sparking concern among key players in political circles and finance.
Speculation is that, besides the multiple lawsuits, he is looking to implement a strategy. The goal is to ensure anti-crypto Democrat members dominate the commission in his “Gensler plan” for 2025.
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The Pro-Crypto Resistance
Pro-crypto representative Tom Emmer said the United States economy would suffer if Gensler becomes the Treasury Secretary.
He blames the chair for suing firms “all over the place” while “losing all over the past.” Emmer thinks Gensler needs to “move on.” Moreover, he adds that his career in civil service should be over by 2024.
Though Democrats are said to support his bid, Republicans will likely unite to oppose his bid.
For now, only time will tell.
In Search Of Balanced Regulation After SEC Industry Harrasment
Currently, the White House is reportedly keen on working on a new crypto bill emphasizing investor protection.
The House on the Hill plans to work closely with Congress and the Treasury Department to develop a comprehensive framework.
Meanwhile, the commission believes existing laws are sufficient, as shown when Gensler critiqued the Financial Innovation and Technology for the 21st Century Act (FIT21).
He said the act shows that crypto firms have been unwilling to comply with applicable laws.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
