Harris Pushes For Gensler As Next Treasury Secretary: Bad News For Crypto?
Talks of Vice President Kamala Harris offering the Treasury Secretary position for SEC Chairman Gary Gensler has responses coming in from both sides of the aisle. While most everyone believes he would be a very strong nominee for the position, most Republicans are really expressing a lot of reservation about his record at the agency, which leaves some alarming concerns about his capacity to lead an important department like the Treasury Department.
Gensler has had no shortage of critics since being confirmed to the helm of the SEC. One of his most vocal critics is Republican Tom Emmer, a representative of Minnesota. He questions whether Gensler has done anything positive through the “lawsuit-heavy approach.”
Big scoop from @MatthewFoldi: Kamala Harris likely to nominate anti-crypto crusader Gary Gensler as Treasury Secretary if elected
https://t.co/i0AZtKXobF— Mike Berg (@MikeKBerg) August 19, 2024
No To Gensler
Emmer said Gensler has been bringing lawsuits all over the place — and “losing all over the place.” The criticism speaks to a developing view within Republican circles that Gensler’s tactics are not just unproductive but may even be counterproductive to the financial landscape.
It is the involvement of the SEC in some noted cases, orchestrated by Gensler and costing the Commission losses, that sets a trend which must be challenged in his ability to negotiate complex financial regulations. Emmer and others, therefore, are concerned that a similar strategy will be employed if Gensler will be appointed Treasury Secretary.
Kamala Harris and Gary Gensler. Source: Wooch/X.com
Economic Implications
The implications of Gensler’s nomination could extend beyond regulatory concerns. What especially alarms many Republicans is his view, which they believe may be directed against economic growth and stability that the country needs.
They believe that the Treasury Secretary is supposed to provide a setting that is business-friendly and a haven for investors. Gensler’s strict line maintained with regard to regulation, particularly when one talks of cryptocurrency, has already set off alarm bells in that space.
Many feel that he would take an even harder line heading the Treasury, and tighter regulations could squelch innovation in the crypto sector.
Total crypto market cap at $2.10 trillion on the daily chart: TradingView.com
The economic landscape is fragile already, and the one thing it does not need now is more uncertainty. Gensler wants regulation done right, but critics argue his approach can be detrimental on investment and entrepreneurship at a time when economic recovery needs them most.
Harris: Political Backlash And Unified Opposition
There is also room for a political battle, as Gensler’s potential nomination has created. The Republican senators, in this regard, are most likely to vote as a block against the nomination of Gensler. This will, however, pose a challenge in the confirmation process if Harris nominates him.
Meanwhile, Donald Trump has already threatened, if re-elected, to dismiss Gensler. This suggested a greater GOP playbook against Gensler, which eroded his authority and legitimacy. The political climate is highly charged, and Gensler’s nomination could well become a flashpoint in the oncoming election cycle.
Featured image from Exeed, chart from TradingView
