The US Senate Banking Committee has blocked the vote to reappoint Caroline Crenshaw to the SEC. Crenshaw has been an SEC commissioner since 2020 and needed Senate approval to continue. With Congress adjourning on December 20 and a Republican-controlled Congress in January, her reappointment is all but dead.
This is coming as the industry flexes muscles to persuade the regulatory authority on various decisions. This might be the first indication that the SEC is about to turn its face on digital assets with the new government.
Crypto Lobby’s Role in Crenshaw’s Downfall
Crenshaw reportedly had a few opponents. Leading the charge was Stand With Crypto, a non-profit backed by the exchange Coinbase, which sent over 100,000 letters to lawmakers asking them to block her renomination. The Blockchain Association and the DeFi Education Fund also sent a letter attacking Crenshaw for being anti-crypto.
The Cedar Innovation Foundation took it to the next level, running ads calling Crenshaw “more anti-crypto than Gensler”. Coinbase CEO Brian Armstrong also allegedly called Crenshaw a failed regulator and told senators their vote for her would be reflected in the crypto advocacy ratings that several organizations have started publishing.
These actions portray that the crypto lobby is getting more organized and powerful in Washington and Crenshaw’s blocked renomination is a big win.
SEC Commissioner Crenshaw’s Anti-Crypto Record
She’s been an industry adversary for a long time for her loud scepticism of digital assets. According to sources, Crenshaw has called crypto markets “petri dishes of fraudulent conduct” and has opposed Bitcoin spot ETFs. She’s aligned with Gensler on progressive regulatory ideas like climate disclosure rules, which has put her at odds with crypto proponents and Republican colleagues.
Critics argue that SEC Commissioner Crenshaw’s views are an overreach of the SEC’s authority, and Republican senators are citing her alignment with Gensler’s aggressive enforcement policies as one of the reasons for their opposition.
A New Landscape for the SEC
SEC Commissioner Crenshaw’s blocked renomination vote comes as the SEC is undergoing broader leadership change. Just recently, Gensler announced his resignation, effective January 20, 2025, the same day President-elect Donald Trump takes office. Trump has just nominated former SEC Commissioner Paul Atkins to replace Gensler.
This seems to be the opportunity the crypto industry has been waiting for, as they have long criticized the SEC’s enforcement-driven approach under Gensler. Atkins’ nomination is in line with the growing influence of crypto advocacy groups, which supported Trump’s re-election and helped get the most crypto-friendly Congress in history.
Crypto’s Growing Presence in U.S. Politics
The crypto industry’s influence on U.S. policy is clear from recent legislation. The spending bill introduced this week has the Deploying American Blockchains Act which is to help boost blockchain adoption and innovation across the country.
Additionally, the crypto-backed super PAC Fairshake was a key player in Trump’s re-election and solidified the industry’s growing political power. This sets the stage for a much friendlier regulatory environment when the new administration takes over.
Conclusion
SEC Commissioner Crenshaw’s blocked renomination is a pivot point for U.S. crypto regulation. There are hopes that the crypto industry is about to get a friendlier regulatory environment.
Organized advocacy, legislative pushes and strategic appointments are just a few ways the industry is making its voice heard in policy. With a new team about to take the helm at the SEC, there’s an open door for a new alignment of U.S. crypto policies that reflects the growing importance of digital assets to the economy.
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FAQ
1. Why was Crenshaw’s renomination to the SEC blocked?
Crypto groups and Republican senators opposed Crenshaw’s renomination because she was anti-digital assets and aligned with Gensler’s regulatory policies.
2. How did the crypto industry block Crenshaw’s reappointment?
Stand With Crypto and the Blockchain Association ran campaigns urging lawmakers to vote against Crenshaw’s renomination because her anti-crypto views stifle innovation.
3. What does this development mean for SEC crypto regulation?
With Gensler out and Atkins in, the new administration is expected to be friendlier to crypto.
4. What is the Deploying American Blockchains Act?
The bill aims to boost blockchain adoption and innovation in the country as the crypto industry grows in influence.
