The U.S. Senate Banking Committee has canceled the vote on Caroline Crenshaw’s renomination to the Securities and Exchange Commission (SEC), effectively ending her chances of securing another term. Crenshaw, who became a commissioner of the SEC in 2020, needed Senate approval to remain in her position, but the decision to scrap the vote leaves her future uncertain. With Congress set to adjourn on Dec. 20 and a Republican-controlled Congress taking over in January, her reappointment appears unlikely.
Crypto industry groups and advocates had been vocal in opposing Crenshaw’s renomination. Stand With Crypto, a nonprofit backed by Coinbase, claimed its members sent over 100,000 letters to lawmakers urging them to block her reappointment. The Blockchain Association and the DeFi Education Fund also sent a letter opposing her nomination, stating that her actions went against the public’s desire for balanced crypto policies. The Cedar Innovation Foundation launched a targeted ad campaign in Washington, calling Crenshaw “more anti-crypto than Gensler.”
Crenshaw has been controversial in the crypto industry due to her stance on digital assets. She has described crypto markets as “petri dishes of fraudulent conduct” and opposed approving Bitcoin spot ETFs. Her alignment with SEC Chair Gary Gensler on progressive regulatory initiatives, including climate disclosure rules, has also drawn criticism from Republican lawmakers, who argue the agency is overreaching its mandate.
The crypto industry views this development as a win. Coinbase CEO Brian Armstrong publicly criticized Crenshaw, calling her a failure as an SEC commissioner and urging senators to reject her renomination. He warned that supporting Crenshaw could affect lawmakers’ ratings on crypto advocacy platforms.
The canceled vote comes amid broader changes in the SEC. Chairman Gary Gensler announced he will resign on Jan. 20, 2025, the day Donald Trump takes office as president. Gensler, who has faced backlash for his aggressive enforcement against crypto companies, described the SEC as a “remarkable agency” in his resignation statement. Meanwhile, Trump has nominated former SEC Commissioner Paul Atkins, known for his crypto-friendly views, to lead the SEC.
This shift in leadership aligns with the crypto industry’s growing influence in Washington. The crypto-backed super PAC Fairshake supported Trump’s reelection and helped secure the most crypto-friendly Congress to date. The spending bill introduced this week includes the Deploying American Blockchains Act, a measure that underscores the industry’s expanding footprint in shaping policy.
Crenshaw’s departure signals a potential shift in the SEC’s approach to crypto regulation, with the industry expecting a more favorable environment under the new administration.
