Kamala Harris is considering the current Chairman of the Securities and Exchange Commission (SEC), Gary Gensler, for the position of Treasury Secretary if she secures victory in the 2024 election. If appointed, Gensler may potentially tighten regulations for crypto firms and financial institutions, according to industry experts. This news, however, has not been positively received by Republicans, especially Representative Tom Emmer, who expressed concerns that such an appointment could negatively impact both the U.S. economy and the crypto sector.
Some Republicans, including congressional representative Tom Emmer, are strongly opposed to Gensler’s potential nomination. their aversion stems from Gensler’s record as SEC Chairman, during which he has been perceived as heavy-handed when dealing with crypto firms. There are concerns that if moved to the Treasury, Gensler could extend his regulatory oversight, unsettling financial markets and hindering the smooth operation of crypto companies.
Nevertheless, a few Democrats like Elissa Slotkin and Ruben Gallego appear to be potential backers of Gensler. Despite their seemingly anti-crypto stance in Congress, both politicians have expressed ties to the crypto industry. However, their support for Gensler should the nomination occur remains to be seen.
Amidst the buzz, a rumor has it that Gensler might resign from the SEC, clearing the way for President Joe Biden to appoint a new chairperson. If Gensler ends up taking charge of the Treasury, the crypto industry is expected to be exposed to increased regulatory scrutiny. This could fuel uncertainty in defining securities in the crypto sphere and potentially cause crypto companies to seek more environment-friendly nations for operations, consequently leaving the U.S. behind in terms of leading the cryptocurrency innovation.