On December 11, the U.S. Senate Banking Committee will be making a decision on whether to renominate Caroline Crenshaw, a Democrat Securities and Exchange Commission (SEC) commissioner. Crenshaw has been a vocal critic of cryptocurrencies, particularly in her opposition to spot Bitcoin exchange-traded funds (ETFs). This has caused a stir within the crypto community, with many expressing their discontent with the possibility of her re-election.
Crenshaw, who assumed her role in August 2020, was one of the two SEC commissioners who opposed the approval of Bitcoin ETFs earlier this year. In a letter expressing her dissent, she raised concerns about the potential risks to investors, stating, “I fear that today we are setting ourselves up for tomorrow’s failure, and it will be the investors that we have a duty to protect who will ultimately pay the price.” Her stance on crypto has been described as even more vehemently anti-crypto than SEC chair Gary Gensler.
Coinbase president and COO Emilie Choi has criticized Crenshaw, labeling her as “anti-crypto” and highlighting her opposition to Bitcoin ETFs. The upcoming vote on Crenshaw’s reappointment has sparked frustration within the crypto community, with some viewing it as a final attempt by Democrat Senate Banking Chair Sherrod Brown to push through an unfavorable decision before relinquishing his position.
If the Senate vote results in Crenshaw being confirmed, she will continue to serve as an SEC commissioner until 2029. However, if she is not reappointed, president-elect Donald Trump will have the opportunity to nominate a replacement. Trump’s recent appointment of Paul Atkins, a former SEC commissioner known for his pro-crypto stance, as the next SEC chief has been well-received by the crypto industry. Atkins is expected to adopt a more lenient approach to regulating crypto and has a track record of advocating for free-market principles and investor protection.
Overall, the potential reappointment of Caroline Crenshaw and the appointment of Paul Atkins signal contrasting approaches to crypto regulation within the SEC. The outcome of the Senate vote will have significant implications for the future of crypto regulation in the United States.