US Lawmakers Make Last-Ditch Effort to Confirm SEC Commissioner Caroline Crenshaw

Senate lawmakers are making a final push to confirm Caroline Crenshaw to a second term as a commissioner at the U.S. Securities and Exchange Commission (SEC) before Democrats lose control of the Senate in January.

According to a December 15 report from Punchbowl, Senate Banking Committee Chair Sherrod Brown has scheduled a nomination vote for Crenshaw on December 18. This vote follows a delay from the original plan to vote on December 11. Brown, who will leave Congress on January 3 after losing his seat to Republican Bernie Moreno, expressed that the delay was due to Republican senators allegedly acting on behalf of corporate special interests, possibly alluding to the cryptocurrency industry. Several crypto-related interest groups, including the Cedar Innovation Foundation, have lobbied lawmakers to oppose Crenshaw’s nomination.

Crenshaw, a Democrat who has served as an SEC commissioner since 2020, was nominated by President Joe Biden in June for a second term. However, with the Senate’s shift to Republican control in January, her confirmation remains uncertain.

Controversy Over Crenshaw's Stance on Crypto

Crenshaw’s nomination has been met with opposition from some factions within the cryptocurrency industry. Critics have argued that she is even more "anti-crypto" than SEC Chair Gary Gensler, citing her vote against approving a spot Bitcoin exchange-traded fund (ETF) in January. These objections have raised questions about the SEC's approach to regulating the crypto market, which has been increasingly scrutinized in recent months.

In contrast, supporters of Crenshaw’s reappointment argue that her regulatory stance is rooted in a need for consumer protection and market transparency. However, some industry advocates have warned that if she is not confirmed, the SEC’s future leadership could swing further toward crypto-hostile policies, especially if the agency is left in Republican hands.

What’s at Stake for Crypto Regulation

The confirmation of Crenshaw is particularly critical given the imminent change in the Senate’s balance of power. When the new Congress convenes on January 3, Republicans will assume majority control in both the Senate and the House of Representatives. This shift could lead to significant changes in crypto and blockchain policy, especially within the Senate Banking Committee, which has been instrumental in shaping these regulations.

Following Brown’s departure, Senator Elizabeth Warren of Massachusetts is expected to become the top Democrat on the banking committee. She has been a vocal advocate for stronger regulation of the crypto sector. Meanwhile, Senator Tim Scott, the current ranking member, will assume the chairmanship of the committee. The future direction of crypto regulations will depend heavily on how these leadership transitions unfold.

As the SEC has ramped up enforcement actions against crypto firms under Gensler’s leadership, many in the industry have expressed concerns about the agency’s aggressive stance. These concerns have sparked a debate about the political implications of the SEC’s approach, with some suggesting that Gensler’s regulatory moves may have contributed to the Democratic Party’s struggles in the 2024 election.

Looking Ahead: A New SEC Leadership Under Trump?

As the Biden administration’s regulatory push comes to a close, speculation has arisen about potential changes to the SEC under a possible second term for former President Donald Trump. Trump has indicated plans to nominate former SEC Commissioner Paul Atkins to replace Gensler as chair. While Atkins is seen by some in the crypto community as a more favorable choice, his nomination would need to pass the Senate, which could be a challenging process if Republicans are unable to secure a majority for his appointment.

In the coming weeks, the crypto industry will closely watch developments around Crenshaw’s confirmation and the broader regulatory landscape that could shape the sector’s future in the United States.