Regulation
Gary Gensler Started The ‘Treasury Secretary’ Rumor Himself
Rumors swirling about SEC Chair Gary Gensler potentially becoming Treasury Secretary if Kamala Harris wins the 2024 presidential election have stirred significant debate within the crypto industry. However, Custodia Bank CEO Caitlin Long debunked these claims. Moreover, she believes that Gensler himself is the source of these rumors.
How ‘Gary Gensler As Treasury Secretary’ Rumors Started
The speculation originated from a Washington Reporter scoop by Matthew Foldi. In the reported, Foldi reiterated that Paradigm CLO Katie Biber had floated the notion of a “Gensler plan.” This plan would allegedly “ensure a Dem Commission majority in 2025 — forcing a newly-elected President Trump to oust him.”
It would position Gary Gensler to become an SEC commissioner once more. Moreover, it would enable President Biden to appoint a successor such as Caroline Crenshaw, known for her critical stance on the crypto industry. Hence, the SEC’s anti-crypto crusade would continue even if Gensler steps down.
The “Gensler plan” has generated a mix of intrigue and skepticism among industry figures and political commentators. The cause of the latest rumors is a Capitol Hill source familiar with SEC matters, as cited by Foldi. The source suggested that Gensler might agree to such a scenario if he were promised a role as Treasury Secretary by Kamala Harris if she wins.
Industry Leaders Debunk These Claims
These speculations didn’t sit well with the crypto industry that called for Harris to fire Gensler. Furthermore, Custodia Bank’s Long took to X and challenged the credibility of this rumor. She stated, “Multiple Dems contacted me to say the ‘Gensler as Treasury Secretary’ rumor is false.”
According to Long, a Democrat believes that Gensler himself is behind the rumor, either to create confusion or to manipulate perceptions. This assertion is supported by Sheila Warren, CEO of the Crypto Council, who echoed Long’s sentiments. Warren write on X, “I’ve heard this is false from multiple [Republicans] as well.” This bipartisan dismissal suggests that the rumor may lack substantive backing.
Rep. Tom Emmer had previously cautioned that Kamala Harris might choose Gensler as or Senator Elizabeth Warren for the Treasury Secretary position. Emmer criticized Gensler’s tenure at the SEC, stating:
“He’s been bringing lawsuits 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.”
Bloomberg Senior ETF analyst Eric Balchunas spotlighted Emmer’s stance in a post on X. Moreover, Balchunas suggested, “It kinda sounds like he’s the source of the rumor.” This statement aligns with Custodia Bank CEO’s statement, solidifying the possibility of Gary Gensler starting the rumor himself.
Crypto Industry Reactions
Moreover, Ripple CTO David Schwartz took a more sarcastic tone in response to the rumors. On X, he wrote, “Good news, everyone! Sources say if Harris is elected, she will remove Gensler as chair of the SEC before his term is up!” Ripple recently reached the end of the legal tussle with the SEC with the former receiving a $125 million penalty.
Charles Hoskinson, founder of Cardano, weighed in with a critical perspective. He noted, “As I have repeatedly stated, team blue is not Crypto’s friend.” Hoskinson’s remark reflects broader skepticism within the crypto industry about the Democratic Party’s alignment with crypto interests.
Similarly, pro-XRP lawyer Bill Morgan condemned the idea, calling those who support Harris as a crypto ally “useful idiots.” He warned, “Imagine the damage he will do to crypto as Treasury Secretary. Where are the Democrats for Crypto crowd. Are they still having meetings with senior people from the Administration and being ‘listened’ to.”
Kritika Mehta
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- The UK will introduce unified crypto regulations, including stablecoins, in early 2025.
- New rules aim to simplify oversight and avoid restrictive staking classifications.
- Labour government aims to compete with EU’s MiCA rules and US pro-crypto policies.
The United Kingdom is set to introduce a comprehensive regulatory framework for cryptocurrencies, stablecoins, and crypto staking services in early 2025, marking a pivotal shift in its approach to digital assets.
The announcement was made by the Economic Secretary to the Treasury Tulip Siddiq at City & Financial Global’s Tokenisation Summit in London on November 21.
Initially slated for December 2024, the regulatory rollout was delayed due to the change in government following the election of Prime Minister Keir Starmer’s Labour administration in July 2024.
The upcoming UK crypto regulatory framework
The upcoming framework consolidates regulations for crypto assets into a single, overarching regime, a decision Siddiq described as “simpler and more logical.”
The framework aims to provide clarity in a rapidly growing sector that has faced uncertainty in the UK.
Stablecoins will receive distinct treatment under these regulations, as their functionality does not align with existing payment services rules.
Siddiq highlighted that staking services would also avoid being designated as “collective investment schemes,” a classification that could impose burdensome restrictions.
UK aims to align with the global crypto regulatory landscape
The UK government’s renewed focus on digital asset regulation comes as it seeks to align with global developments. The European Union’s Markets in Crypto-Assets (MiCA) regulations will be fully enforced by the end of 2024, offering regulatory certainty that has positioned Europe as an attractive market for the crypto industry.
Meanwhile, the US, under President Donald Trump’s administration, has adopted a markedly pro-crypto stance, including the establishment of a White House “crypto czar” and SEC Chair Gary Gensler’s planned departure in January 2024.
The Labour government has shown its intent to catch up with international competition. In September 2024, it introduced a bill recognizing NFTs, cryptocurrencies, and carbon credits as property.
The new regulatory push reflects the UK’s ambition to regain credibility as a crypto hub while addressing criticisms of the Financial Conduct Authority’s perceived stringent oversight.
By delivering a robust, streamlined framework, the Labour government aims to bolster the UK’s standing in the multibillion-dollar crypto industry.
In a recent development, the US Securities and Exchange Commission (SEC) announced that Gary Gensler will step down from his position next year. This follows calls for Gensler to resign since Donald Trump won the US presidential elections.
Gary Gensler To Step Down As US SEC Chair
The US SEC announced in a press release that Gary Gensler will depart the Agency on January 20, 2025. The US SEC Chair also confirmed this development in an X post. Interestingly, this comes on the same day that Donald Trump will be inaugurated as the 47th president of the United States.
Following the announcement, Gensler also used the opportunity to reflect on his time at the Commission. He remarked that it has been an “honor of a lifetime” to serve alongside those at the SEC. He also thanked President Biden for the opportunity to serve in the position. Gensler has been the US SEC Chair since April 2021. During his time, he has spearheaded several litigations against the crypto industry.
This includes the long-running legal battle with Ripple, which Gensler took over from his predecessor Jay Clayton, which bordered on whether XRP was a security. Up till now, the Agency continues to reiterate this ‘digital asset securities’ claim.
Boluwatife Adeyemi
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BitClave investors have started receiving $4.6 million in repayments from the U.S. Securities and Exchange Commission (SEC), following a settlement reached in 2020. The SEC announced on Nov. 20 that payments from the BitClave Fair Fund had been disbursed to eligible investors harmed during the company’s 2017 initial coin offering (ICO).
Pro-XRP lawyer and online commentator “MetaLawMan” criticized the SEC’s stance on digital assets, stating on social media, “Here we go again with ‘digital asset securities.’ Unbelievable.” The lawyer’s statement reflects ongoing industry frustrations over the SEC’s regulatory approach to cryptocurrencies.
BitClave Investors Get $4.6M Back in US SEC Settlement
The US SEC assured the public that $4.6 million was returned to investors who filed the claims and were eligible for the refunds. These funds were agreed upon in 2020 after the SEC accused BitClave of conducting an unregistered ICO.
The company’s initial coin offering (ICO) in 2017 brought in $25.5 million in only 32 seconds and distributed its Consumer Activity Token (CAT) to thousands of buyers. The SEC therefore claimed that the ICO was an unregistered securities transaction because potential investors were induced to invest in the CAT token with an expectation of appreciation of its value.
Under the settlement, BitClave will have to refund the money it raised and also pay $4 million in fines and interest. In between these settlements, John Deaton has accused the regulator of using laws that were set in 1933.
The Fair Fund was therefore created to ensure that the funds are returned to the affected investors. The claims submission period closed in August 2023, and the eligible investors received the information on the claims in March 2024. The Securities and Exchange Commission posted on its social media accounts that the payment has been made, and “the checks are in the mail.”
BitClave Settlement Included Penalties and Token Destruction
In the settlement, BitClave did not accept or reject the accusations made by the SEC but agreed to cough up $29 million. This total consisted of the $25.5 million that was generated in the ICO and the additional $4 million in fines.
Concurrently, the company also committed to burning 1 billion of the catalyst tokens that have not been distributed and to ask exchanges to delist the token.
The Securities and Exchange Commission therefore pointed out that by February 2023, BitClave had only remitted $12m to the Fair Fund, thus leaving questions on the balance of $7.4m. Neither the SEC nor the fund administrator gave further details on the matter, and it is still uncertain as to how the outstanding payment will be collected.
US SEC Maintains Strict Regulatory Stance on Crypto
The US SEC has continued to enforce regulations on crypto companies under the Biden administration, with over 100 enforcement actions taken against the industry. BitClave’s settlement, subsequently, is one of many cases where the regulator has targeted unregistered ICOs and other alleged securities violations.
BitClave’s case, handled under former SEC Chairman Jay Clayton, emphasized the agency’s view that many digital assets fall under securities laws. The CAT white paper described potential value increases, which the regulator argued encouraged speculative investment in an unregistered security.
As the US SEC faces criticism, President-elect Donald Trump has expressed plans to reshape crypto oversight. Trump has promised to remove current SEC Chair Gary Gensler and is reportedly considering creating a new White House position dedicated to cryptocurrency policy.
Kelvin Munene Murithi
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Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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