In summary
- Caroline Crenshaw’s reelection vote to the SEC was canceled, eliminating almost any chance of her winning another term.
- Pressure from the crypto ecosystem, including a campaign from Coinbase and Stand with Crypto, influenced his nomination to be blocked.
- The SEC could lean toward a Republican majority with Paul Atkins as chairman under the Trump administration.
The vote to extend SEC Commissioner Caroline Crenshaw’s term was canceled Wednesday, likely ending her chance to secure another term at America’s top digital asset regulatory agency—a major victory for the attempt. of the crypto ecosystem to expand its influence on Capitol Hill.
The US Senate Banking Committee was due to vote last Wednesday on extending Crenshaw’s tenure at the SEC, where the regulator has served since 2020. The vote has been voided without the possibility of rescheduling, an aide told Decrypt of the Senate with knowledge of the matter. This means Crenshaw’s chances of securing another term at Wall Street’s top watchdog are slim to none.
“He’s essentially dead,” Cryptocurrency lobbyist and Digital Chamber President Cody Carbone told Decrypt of Crenshaw’s re-nomination.
To remain at the SEC, Crenshaw would have had to secure approval from the Senate Banking Committee before the end of the current session of Congress. But the 2024 Congress calendar ended today, December 18.
After this date, Crenshaw could continue to seek another term on the Commission—but would have to win approval from the new Republican-controlled Congress that will come into session next year. And that is very unlikely.
“The Republicans will not be running their nomination,” Carbone said.
Crenshaw is one of the latest targets of pro-cryptocurrency lobbyists’ efforts to reshape the SEC. The regulatory agency is made up of a chairman and five commissioners, who are appointed by the US President for five-year terms with the approval of the Senate.
President Biden reappointed Crenshaw to the Commission earlier this year, shortly after the regulator’s term ended in June. However, it seems more likely that the Commission will have a three-person Republican majority in the coming years.
SEC Chairman Gary Gensler, who led a crusade against cryptocurrencies during the Biden administration, signaled last month that he would resign from the agency in January. Democratic-backed SEC Commissioner Jaime Lizárr has also retired from the Commission.
Additionally, President-elect Donald Trump has nominated former SEC Commissioner Paul Atkins to be the agency’s next president.
Digital asset advocates launched an aggressive campaign to unseat Crenshaw ahead of the Senate Committee’s vote on the nomination.
Stand with Crypto, a nonprofit advocacy group backed by major cryptocurrency exchange Coinbase, announced Tuesday that its members flooded lawmakers’ inboxes with more than 100,000 letters opposing Crenshaw’s new appointment to the SEC.
Meanwhile, two pro-cryptocurrency lobbying groups, the Blockchain Association and the DeFi Education Fund, implored lawmakers in a letter earlier this week to block Crenshaw’s nomination. At the same time, the crypto-backed Cedar Innovation Foundation launched an ad campaign calling Crenshaw “more anti-crypto” than the much-criticized Gensler.
Coinbase CEO Brian Armstrong also joined the fray, asking lawmakers in a post on X last week to filibuster the commissioner’s nomination.
Crypto industry advocates helped secure the return to the White House of self-proclaimed cryptocurrency advocate Donald Trump, stoking hopes that pro-digital asset regulations will take root in the U.S. Meanwhile, the super PAC Fairshake, backed by the digital asset industry, helped secure the most crypto-friendly US congressional election to date.
Additional reporting by Sander Lutz
Edited by Andrew Hayward
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