Reappointment of SEC Commissioner Crenshaw Postponed Amid Backlash

The Senate Banking, Housing and Urban Affairs Committee has delayed its vote on the reappointment of SEC Commissioner Caroline Crenshaw, who has faced fierce criticism from the crypto industry for her anti-cryptocurrency stance.

Crenshaw was described as an anti-crypto commissioner, even worse than Gary Gensler.

The vote for SEC Commissioner Caroline Crenshaw’s renomination, originally scheduled for Wednesday morning, was postponed by Senate Banking Committee Chair Sherrod Brown to later that day.

However, Republican senators prevented this rescheduling, and without confirmation, Crenshaw’s future at the SEC is now uncertain.

Time to Deliver

The Senate needs to reschedule the vote within the week, as Congress is approaching its year-end adjournment. If the Senate does not confirm Caroline Crenshaw or appoint a replacement, President-elect Donald Trump may select Paul Atkins or a new commissioner to take her position, as reported by Bloomberg.

Atkins was recently nominated by Trump to head the securities agency, pending Senate confirmation. A former SEC commissioner, Atkins is a well-respected figure in financial regulatory circles. He currently serves as CEO of Patomak Global Partners, a consulting firm he founded that focuses on financial services and regulatory compliance.

Crenshaw, who has served as an SEC Commissioner under both the Trump and Biden administrations, can continue in her role until approximately January 2025 if the Senate does not confirm a replacement.

Crenshaw’s nomination bid has sparked controversy and backlash from many cryptocurrency community members and figures. The commissioner, while not presenting herself as a vocal anti-crypto politician, did act as such.

Critics view Crenshaw as even worse than SEC Chair Gary Gensler, who is already known for his skepticism toward cryptocurrencies.

The perception is backed by the fact that she was one of only two commissioners who opposed the approval of spot Bitcoin exchange-traded funds (ETFs), which ultimately received support from Gensler and two other commissioners, Hester Peirce and Mark Uyeda.

In a letter post-Bitcoin ETF approval, Crenshaw stated that she was concerned about the decision, describing the SEC’s approval as “unsound and ahistorical.” She stated that the decision would jeopardize investor protection.

Ahead of the Wednesday hearing, several cryptocurrency advocacy groups, like the Digital Chamber and the Blockchain Association, publicly urged lawmakers to reject her renomination. They were concerned that her reappointment would lead to extended regulatory hurdles for the cryptocurrency industry.

Coinbase CEO Brian Armstrong warned that her confirmation would cause negative consequences for the industry’s regulatory environment. Armstrong stressed that Crenshaw failed as SEC commissioner.

Republicans also voiced concerns about the timing of her nomination vote. They accused Democrats of being in a rush to confirm her before potentially losing their Senate majority.

Failing to confirm Crenshaw could lead to negative consequences. Tyler Gellasch, president of the Healthy Markets Association, warns that if Crenshaw is not confirmed and the SEC falls under single-party control, it may result in instability.

“A shift to single-party control of the SEC would mean that the agency’s rules and enforcement efforts would likely lurch from one ideological extreme to another, materially jeopardizing the US’s role as the world’s predominant market,” Gellasch said.

Crenshaw is now the only Democrat on the commission as commissioner Jaime Lizárraga is set to resign from the SEC on January 17, 2025, three days before Gensler’s departure.

Trump Moves to Nominate CFTC Chair

After picking Paul Atkins as SEC chair, Trump’s team is now weighing in a number of candidates to head the Commodity Futures Trading Commission (CFTC). The agency, responsible for regulating the U.S. derivatives markets, is poised to play a major role in regulating digital assets under the Trump administration.

The list of candidates includes Brian Quintenz, a former CFTC commissioner known for his pro-crypto stance, and Perianne Boring, founder of the Digital Chamber of Commerce. Trump’s transition team is expected to finalize their choice in the coming days, according to Bloomberg.