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Crypto Community Hopes Crushed by Gary Gensler Resignation Fake News

2 mins
Updated by Kyle Baird
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In Brief

  • Fake news about Gary Gensler's resignation from the SEC spread across smaller crypto outlets, raising hopes in the crypto community.
  • Reports suggest that the fake news story, which was later debunked, might have been generated by artificial intelligence.
  • The crypto market saw a surge of around $15 billion, driving total capitalization to $1.25 trillion, despite the false news.
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Fake news has been circulating regarding the resignation of anti-crypto Securities and Exchange Commission chair Gary Gensler. However, the truth is emerging, crushing the hopes of the crypto community.

Over the weekend, news stories about Gary Gensler’s resignation started appearing on some smaller crypto outlets. A website called CryptoAlert ran a story titled “SEC Sources Confirm Gary Gensler Resignation.”

Fake Gary Gensler News Foils Crypto Community

Several others copied it in the hours that followed and spread by bearish Twitter feeds such as “@WhaleChart.” However, by Monday morning, journalists had contacted the SEC, which revealed that the news was fake.

On July 3, Fox Business reporter Eleanor Terrett replied to crypto lawyer John Deaton, who was seeking clarity on the situation.

“My SEC sources are calling BS on this,” she said before confirming that she had reached out for an official comment.

The only things on the official SEC Twitter feed were a list of its latest enforcement actions.

Fox senior correspondent Charles Gasparino also reached out for clarification:

“I tried to get an answer from the SEC flack on Gary Gensler’s rumored resignation (which sounds like wishful thinking from his haters). When I asked the question via email, his chief PR guy said ‘Sorry what?’”

A couple of hours later, he posted, “As expected, SEC PR says Gary Gensler is not resigning.”

Learn more about the tools that the SEC is using to crack down on crypto: What Is the Howey Test and How Does It Impact Crypto?

In another twist, it has been reported that the fake news story was generated by artificial intelligence (AI), as were most articles on the spurious outlet.

The crypto community reacted to the story with expected elation. The man has taken it upon himself to carpet-bomb the crypto industry and its leading companies at every opportunity this year.  

Messari co-founder Ryan Selkis said he wouldn’t be surprised if it were true:

“I would not be surprised if Gensler resigns soon. His only political future rests on bowing out gracefully in order to do this administration a solid in an election year.”

“Because we are making him an issue that could cost Dems the Senate and key electoral college states,” he added.

Crypto Market Movements

After the Gary Gensler resignation was debunked, around $15 billion has reentered crypto markets. This has driven total capitalization to $1.25 trillion, with a 1.1% daily gain at the time of writing.

Crypto Market Cap June 26 – July 3. Source: CoinGecko

BTC remained relatively flat on the day at $30,763, but Ethereum had made a bigger move.

ETH was trading up 1.7% at $1,949 during the morning of July 3.

Top crypto platforms in the US | February 2024

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Martin Young
Martin Young is a seasoned cryptocurrency journalist and editor with over 7 years of experience covering the latest news and trends in the digital asset space. He is passionate about making complex blockchain, fintech, and macroeconomics concepts understandable for mainstream audiences.   Martin has been featured in top finance, technology, and crypto publications including BeInCrypto, CoinTelegraph, NewsBTC, FX Empire, and Asia Times. His articles provide an in-depth analysis of...
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