Influencer Guesses Gensler Will Join Crypto Banks Post SEC Exit

A provocative tweet from a crypto influencer has sparked a debate, questioning the future career path of SEC Chair Gary Gensler. The tweet called out the current SEC Chair directly, asking “Hey Gary Gensler, are you going to do a Jay Clayton/Bill Hinman on us? Sue blockchain companies (SEC) then go to work for crypto banks and companies?”

Hey @GaryGensler 👇👇👇👇
Are you going to do a Jay Clayton/Bill Hinman on us?

Sue blockchain companies (SEC) then go to work for crypto banks and companies?

Goldman Sachs’s digital assets unit plans fintech spin-out https://t.co/FBbP1Gg41s

— James Rule XRP 👊😎 (@RuleXRP) November 20, 2024

This bold statement has reignited concerns about regulatory decisions potentially aligning with Gary’s post-tenure career moves, a topic that has previously cast shadows over high-profile former SEC officials.

Clayton and Hinman: Setting the Trend

The mention of Jay Clayton an Bill Hinman is not without reason. Clayton, who chaired the SEC during the infamous lawsuit against Ripple, filed the case on his final day in his office. Shortly after leaving SEC, he joined One River Asset Management, an investment firm with significant crypto holdings, raising questions about his impartiality during his tenure.

Similarly, Bill Hinman, the former SEC Director of Corporate Finance, publicly declared Ethereum a non-security during his tenure. Post-SEC, he became a partner at Simpson Thacher, a law firm deeply connected to the Ethereum Enterprise Alliance. Critics argue that these career moves could hint at potential conflicts of interest and a revolving door between regulators and private industry.

Goldman Sachs’ Digital Assets Spin-Out and Gary Gensler

Goldman Sachs, where Gary was previously a partner, has announced plans to spin off its digital assets unit into a fintech venture. Expected to launch in the next 8-12 months. The spin-out will focus on blockchain technologies an cryptocurrency solutions. As one of the most recognized names in finance, Goldman Sachs could be a perfect fit for Gary if he decides to transition back into the private sector.

With Gary’s experience in crypto regulations and finance, a move to Goldman Sachs’ fintech seems like a very high possibility. If this happens, Gary will be following the same footsteps of Jay Clayton and Bill Hinman.

What It Means for Crypto?

For crypto community, such move from Gensler, could fuel criticism of regulatory actions as self-serving or inconsistent. Also, a post SEC pivot to crypto sector could community to undermine the credibility of his regulatory approach.

Also Read: BlackRock’s Spot Bitcoin ETF Options Lock $1.9B In Contracts On First-Day