SEC Commissioner Crenshaw’s Reappointment Blocked as Cryptocurrency Lobby Gains Momentum

US Senate Banking Committee Canceled Vote to renominate Caroline Crenshaw to the SEC, effectively ending her chances of seeking another term. Crenshaw, who became SEC commissioner in 2020, needed Senate approval to remain in her position, but the decision to overturn the vote leaves her future uncertain. With Congress adjourning on December 20 and a Republican-controlled Congress taking power in January, her reappointment appears unlikely.

Cryptocurrency industry groups and advocates have been vocal in opposing Crenshaw’s renomination. Stand With Crypto, a non-profit organization backed by Coinbase, claimed that its members sent more than 100,000 letters to lawmakers urging them to block its reset. The Blockchain Association and Decentralized Education Fund also sent a letter opposing her nomination, stating that her actions conflict with 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 cryptocurrency industry due to its stance on digital assets. she has described He called cryptocurrency markets “petri dishes for fraudulent behavior” and opposed the approval of bitcoin ETFs. Her alliance with SEC Chairman Gary Gensler on progressive regulatory initiatives, including climate disclosure rules, has drawn criticism from Republican lawmakers, who argue the agency is overstepping the bounds of its mandate.

The cryptocurrency industry sees this development as a win. Coinbase CEO, Brian Armstrong, publicly criticize Crenshaw, called her a failure as SEC commissioner and urged senators to reject her renomination. He warned that Crenshaw’s support could influence the ratings of lawmakers on cryptocurrency advocacy platforms.

The canceled vote comes amid broader changes at the Securities and Exchange Commission. Chairman Gary Gensler announced that he will resign on January 20, 2025, the day Donald Trump takes office as president. Gensler, who has faced backlash for his tough enforcement against cryptocurrency companies, called the SEC a “wonderful agency” in his resignation statement. Meanwhile, Trump nominated former SEC Commissioner Paul Atkins, known for his pro-crypto views, to lead the SEC.

This shift in leadership is in line with the growing influence of the cryptocurrency industry in Washington. Crypto-backed Super PAC Fairshake supported Trump’s re-election and helped secure the most crypto-friendly Congress yet. The spending bill introduced this week includes the US Blockchain Deployment Act, a measure that underscores the industry’s growing footprint in shaping policy.

Crenshaw’s departure signals a potential shift in the SEC’s approach to cryptocurrency regulation, as the industry expects a more favorable environment under the new administration.