Emily Walker
The Senate Banking Committee has decided to cancel the vote regarding the reappointment of SEC Commissioner Caroline Crenshaw, who is noted for her critical views on Bitcoin and cryptocurrencies. This decision could be beneficial for the crypto sector.
According to FOX Business reporter Eleanor Terrett, this means Crenshaw will not be nominated again as Congress is set to adjourn on December 20.
Challenges Ahead for SEC Commissioner Crenshaw
Terrett reports that a Senate aide has confirmed the cancellation of the markup vote for her reappointment. Although she can continue to serve until someone is appointed or Congress returns next year, her position is now in jeopardy.
Typically, the minority party, in this case, the Democrats, proposes candidates for SEC roles. While the President has the ability to consider these nominations, he is not required to accept them.
This situation raises the potential for Democrats, influenced perhaps by notable voices like Elizabeth Warren, to attempt to revive Crenshaw’s nomination. Ultimately, the decision to renominating her rests with Trump.
This vote cancellation follows a mounting campaign from cryptocurrency advocates and industry leaders who have openly criticized her record. Detractors contend that her backing of SEC Chairman Gary Gensler’s approach has been damaging to the industry.
Crenshaw has referred to crypto markets as “petri dishes of fraudulent conduct” and opposed Bitcoin spot exchange-traded funds (ETFs), intensifying the backlash against her.
Is Crenshaw Less Favorable to Crypto than Gensler?
Brian Armstrong, the CEO of Coinbase, expressed strong disapproval of Crenshaw last week, stating she had failed in her role as SEC Commissioner. He criticized her attempts to thwart Bitcoin ETFs and claimed she posed even greater issues than Gensler in some respects.
Armstrong warned that supporting Crenshaw could harm senators’ standings on the Stand with Crypto scale, an initiative to evaluate politicians based on their backing of cryptocurrency policies.
Reacting to her anti-crypto stance, the Cedar Innovation Foundation, backed by the industry, initiated a mobile ad campaign in Washington D.C. and on social media branding her as “more anti-crypto than Gensler.”
Additionally, last Monday, leaders from the Blockchain Association and the DeFi Education Fund sent a letter to Senate Banking leaders opposing her reconfirmation. They remarked, “Congress has a clear mandate from the American people to establish sound and reasonable cryptocurrency-related policies,” expressing worry that Crenshaw’s actions have not aligned with this mandate.
Her collaborations with Gensler on progressive regulatory matters, including a climate disclosure rule for public companies, have also stirred discomfort among Republican lawmakers, who argue that the SEC is overstepping its congressional role by involving itself in social issues like climate change.
The cancellation of her renomination vote suggests that the lobbying efforts from the cryptocurrency sector are yielding positive outcomes. The industry is now looking forward to the potential appointment of a more crypto-supportive commissioner to take Crenshaw’s place in 2025, which could pave the way for a friendlier regulatory landscape for digital assets in the U.S.
Featured image from DALL-E, chart from TradingView.com