Rumors of Gary Gensler's resignation are made up

Rumors of the SEC chief's resignation spread like wildfire in the crypto sector, but turned out to be fake news moments later.

Yesterday, rumors circulated in the crypto sector about a possible firing of Gary Gensler. According to these rumors, an anonymous insider at the US Securities and Exchange Commission (SEC) reported an internal investigation against his boss.

However, the rumors turned out to be fake news a short time later. According to Fox Business' Senior Correspondent Charles Gasparino.

The fabricated story turned out to be from the website thecryptoalert.com. The dubious publication also allegedly wrote much of the text using an AI.

Nevertheless, the news initially spread like wildfire in the cryptospace. Populaire Twitteraccounts shared it multiple times, often mentioning the "anonymous official of the SEC," giving credibility to the story.

The story is a testament to the tensions between the crypto sector and the regulator, which has cracked down hard this year under the leadership of Gary Gensler.

Gensler's style of regulation, meanwhile, is becoming increasingly more criticized, even by employees of his own authority.

So the rumors are not entirely absurd. Especially since some U.S. senators have already called for Gensler's resignation.