Rumors have been rife in the cryptocurrency community over the past weekend about the potential resignation of Gary Gensler, the Chair of the U.S. Securities and Exchange Commission (SEC). Reports citing an anonymous official suggested Gensler was planning to step down following an internal investigation within the SEC. This speculation was put to rest when Eleanor Terrett, a Fox Business reporter, confirmed via her Twitter account that Gensler was not resigning from the SEC.
Sharing a response from the SEC’s PR team, Terrett tweeted:
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
The rumors first began to circulate on Sunday when a website called TheCryptoAlert ran a story titled “SEC Sources Confirm Gary Gensler Resignation.” The story cited an anonymous official who allegedly disclosed that Gensler was considering resignation. Furthermore, it was also revealed that the phony news piece, along with the vast majority of articles on the site, was created by artificial intelligence (AI).
This news caused a buzz in the crypto community, with many speculating on the potential impact of such a change in leadership on the crypto market. This is due to the fear that a new SEC Chair could potentially adopt even more stringent anti-crypto enforcement measures. The rumors were further fueled by an anonymous tweet posted by the handle @WhaleChart, which reported that Gensler would resign following an internal investigation.
At the time, Crypto influencer Ben Armstrong clarified that the news of Gensler’s resignation was merely a rumor. Armstrong went further to state that if Gensler were to leave his position, it would likely not be a resignation but a transition to a new role outside the SEC. Speculation has arisen that Gensler might consider running for the Senate seat in Maryland, given his ties to the region.
Meanwhile, John Deaton, the attorney representing XRP holders in the Ripple vs. SEC lawsuit, was also one of the few who believed that Gensler’s resignation was a possibility due to political factors. The attorney asserted that Gensler’s likelihood of resigning increased as his “political liability” status grew.
