**Key Takeaways**
Caroline Crenshaw has faced criticism for her stance against cryptocurrencies and spot Bitcoin ETFs.
The SEC is experiencing leadership changes amid internal disagreements regarding crypto regulation.
The Senate Banking, Housing, and Urban Affairs Committee is set to vote tomorrow on whether to reappoint Caroline Crenshaw as SEC Commissioner. However, Crenshaw’s renomination has encountered significant opposition from the crypto industry due to her perceived anti-crypto position.
The Digital Chamber, an American advocacy group focused on promoting blockchain technology and the digital asset industry, has publicly urged the Senate Banking Committee to reject Crenshaw’s nomination for a second term as SEC Commissioner.
In a letter dated December 12, the organization argues that Crenshaw’s tenure has been marked by a negative and outdated view of the digital asset market, evidenced by her dissent on spot Bitcoin ETF approvals and her opposition to Grayscale’s Bitcoin ETF conversion.
The Digital Chamber calls for a replacement for Commissioner Crenshaw, believing that a new commissioner is necessary to create a more balanced and forward-looking regulatory framework for the digital asset industry.
Crenshaw was appointed to the SEC in 2020 by former President Trump and has been renominated by President Biden for a second term. If confirmed by the Senate, her term would extend beyond the usual five-year period, potentially lasting until June 2029.
Some Republicans argue that Democrats are hastily advancing Crenshaw’s confirmation before they may lose their majority in the Senate in January. The vote is scheduled for 9:45 AM EDT, just days before Congress is set to adjourn for the year.
Critics suggest that the timing reflects a strategic push by Democrats to secure Crenshaw’s position at the SEC, thereby maintaining a regulatory framework they believe is essential for overseeing the crypto sector.
As the key vote approaches, the crypto industry is rallying to oppose Crenshaw’s renomination. The Digital Chamber’s letter is part of a concerted lobbying effort aimed at directly blocking her reappointment.
Industry figures, including Coinbase CEO Brian Armstrong, have publicly condemned Crenshaw’s record. Armstrong has labeled her a failure as an SEC Commissioner and urged lawmakers to vote against her nomination.
Several digital asset organizations, such as the Blockchain Association and the DeFi Education Fund, have mobilized efforts to block her confirmation, arguing that her actions have undermined Congress’ mandate for sound crypto regulations.
The Cedar Innovation Foundation, a dark-money group backed by undisclosed crypto interests, has launched a digital ad campaign branding Crenshaw as “more extreme” than Gary Gensler, citing her opposition to spot Bitcoin ETFs and her “petri dish” remark.
Source: @CIFonX
If all Democratic members of the Senate Banking Committee vote in favor of Crenshaw, they could secure enough votes to advance her nomination to the full Senate.
Although Crenshaw has support from Democratic senators, the intense lobbying against her and the shifting political landscape, which has seen several Senate seats flip to Republicans, create a challenging environment for her confirmation.
Caroline Crenshaw and Jaime Lizárraga are two SEC commissioners who voted against the approval of spot Bitcoin ETFs in January. In contrast, Gary Gensler, the current SEC Chairman, often perceived as critical of the crypto industry, along with commissioners Hester Peirce and Mark Uyeda, supported the approval of these products.
Lizárraga will step down from the SEC on January 17, 2025, just three days before Gensler’s departure, leaving Caroline Crenshaw as the only Democrat on the commission.
