Is Gensler’s SEC Future at Risk? Resignation Rumors Raise Questions

• Rumors that Gary Gensler had resigned from the SEC had spread over the weekend.
• The speculation has sparked discussion about Gensler’s standing with the current administration.
• The SEC chief’s stance on crypto has alienated him from the community.

Over the weekend, rumors spread that United States Securities and Exchange Commission Chair Gary Gensler had resigned from office following an internal investigation.

These rumors were fueled by a report from a newly created, self-proclaimed crypto news website, citing anonymous sources. While the report has since been denied, it has sparked discussions over the SEC chief’s standing with the current administration.

Gensler’s Future Uncertain?

On Saturday, July 1, CryptoAlert, a self-proclaimed crypto news website, reported that Gensler had stepped down from his role as head of the SEC. But FOX reporters have debunked this report, sharing statements from the SEC’s public relations team.

The response from the @SECGov’s PR team when asked whether the rumors of @GaryGensler resigning his position as Chairman following an alleged internal investigation had any merit. 👇🏼 https://t.co/LAKpdrytac pic.twitter.com/w71dbfsRHh

— Eleanor Terrett (@EleanorTerrett) July 3, 2023

Still, in the wake of the recent speculation, there has been discussion over whether Gensler is still in the Biden administration’s good books or has become a liability.

Not yet. But we are entering the election year season and the more of a political liability @GaryGensler becomes the greater chance it does happen. https://t.co/eeCGGJbGJj

— John E Deaton (@JohnEDeaton1) July 3, 2023

Proponents of the idea that Gensler has now become a “political liability,” like Messari Capital Chief Executive Officer Ryan Selkis, argue that the SEC chief could cost the Biden administration key votes that could come in handy in a tight race for the presidency.

"I think it's unlikely that he [Gensler] resigns, but it would be smart for this administration to ask him to," Selkis added.

But not all are as convinced as Selkis, pro-crypto securities lawyer James “MetaLawMan” Murphy suggested that it is possible that some polling data was showing that an anti-crypto stance was popular with voters.

There must be some polling data showing that being anti “crypto bros” is a big vote getter.

Sen. Warren announces she’s forming an “anti-crypto army.”
Pres. Biden regularly decries a mysterious “crypto bro” tax break.@GaryGensler may have more political support than we think. https://t.co/6BHtSJdvTI

— MetaLawMan (@MetaLawMan) July 3, 2023

The Gensler-led SEC has notably formed a hard stance on crypto in the U.S., ramping up enforcement efforts in recent months following the FTX collapse. The SEC’s approach to regulating the crypto markets has rubbed off many, including lawmakers, the wrong way.

Gensler maintains that most crypto assets are unregistered securities, a classification that industry participants have disputed and described as unclear.

On the Flipside

• Gensler still appears to have the support of most Democratic lawmakers.

Why This Matters

The recent discussion over Gensler’s future at the SEC underscores the polarizing nature of his tenure at the agency’s helm.

Read this to learn more about Gary Gensler’s stance on crypto:

SEC Chair Gensler Urges Crypto Exchanges to Comply: Summary Rundown of Testimony

Vitalik Buterin‘s unsettling views about Ethereum staking have attracted flak from Charles Hoskinson. Find out more:

Cardano’s Hoskinson Drags Ethereum Staking Over Controversial Buterin Video