About That ‘Gary Gensler for Treasury Secretary’ Story

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If true, this would certainly be a big deal for the crypto industry and beyond.

Gary Gensler is (let’s just say it) universally disliked in crypto for the SEC’s frequent aggressive “enforcement actions” and for his unwillingness to be clear about what is and what isn’t legally permissible when it comes to digital assets.

But is the story true? Let’s take a look at the evidence, and how this “story” may have come about.

It may be true that “multiple senior Senate staffers” believe Gensler could be Treasury Secretary in a Harris administration. Gensler is long believed to have coveted that job and he would certainly be well-qualified: he worked on Wall Street (Goldman Sachs), he’s led both of the country’s primary markets regulators (the SEC and Commodity Futures Trading Commission), and he was a professor at MIT. He’s a well-rounded, experienced economic public servant; why wouldn’t he be considered as a Treasury Secretary candidate? Putting aside that Harris needs to win the presidency, a Senate majority and persuade both Democratic and Republican Senators to support his nomination … it’s certainly possible Gensler could get the job next year, though, according to most experts, that is unlikely.

But the story is filled with red flags that any decent editor would immediately mark up with red ink. For example: “Those rumors corroborate what top Republicans have also told the Reporter on the record.” Rumors don’t corroborate anything. And there’s nothing close to a quote from someone close to the Harris camp; the “likely” in the headline all comes from those Senate staffers.

We chose not to publish the story since it failed to meet our editorial standards. It lacked any verifiable sources or direct accounts from those alleged to be involved (Gensler’s nominators). Additionally, several reliable sources expressed skepticism and disregard upon hearing about this unverified report.

Essentially, the Washington Reporter appears to be an established news source at first glance. However, upon closer inspection of their website, it becomes evident that this publication was initiated by Republican political strategists. Their mission statement indicates they cover stories from various interest groups such as lobbyists or operatives, as long as the information is accurate, impartial, and enlightening. In simpler terms, the Washington Reporter doesn’t fit the definition of journalism. (Axios provides more details about its origins here.)

The Gensler-for-Treasury story was certainly compelling, though. And the thing about compelling stories is that they have a way of becoming true even when there’s no truth to them. For instance, The Block, which does solid work daily, picked up the thread and ran a straight “Gensler is being considered for Treasury Secretary” headline. Other well-known reporters tweeted about it (including Unchained’s Laura Shin). Whatever the merits, the story was rapidly becoming true in the retelling.

Could it be that the individuals who are pro-cryptocurrency could potentially shift their support away from Democrats, if the speculation about nominating Gary Gensler as Treasury Secretary turns out to be true? This rumor, which may have been strategically leaked by a political operative, hints at such a possibility.

As a researcher contributing to this platform, it’s essential to clarify that the opinions I express here may not align perfectly with the perspectives held by CoinDesk, Inc., its owners, or their affiliates. However, I am committed to sharing my unique insights and findings, fostering a diverse and open dialogue within our community.