US Senate Banking Committee Cancels Anti-Crypto SEC commissioner Caroline Crenshaw's Renomination
Ding dong! The wicked witch is dead!
Jokes aside, Caroline Crenshaw, a prominent and controversial figure in the SEC known for her staunch anti-crypto stance, will not serve a second term.
The US Senate Banking Committee abruptly cancelled her renomination vote, originally scheduled for 18 December, citing a lack of legislative floor time.
🚨BREAKING: A Senate aide has just informed me that tomorrow’s Senate Banking Committee scheduled markup vote on @SECGov Commissioner Caroline Crenshaw has been canceled.
She will not be renominated to her position.
— Eleanor Terrett (@EleanorTerrett) December 17, 2024
This decision effectively ends her tenure, marking a pivotal moment for the cryptocurrency industry.
Crenshaw's four years at the SEC were marked by tension and courtroom clashes, particularly over her opposition to Bitcoin ETFs and her repeated characterisation of crypto markets as "petri dishes of fraud."
Critics argue that instead of fostering constructive regulation, her policies hindered progress in establishing a clearer framework for the sector.
NEWS: The Senate Banking Committee is abandoning its effort to advance the nominations of SEC Commissioner Caroline Crenshaw and Gordon Ito to serve on FSOC.
A Banking aide said the committee vote scheduled for tomorrow will be canceled and cited the lack of floor time
— Brendan Pedersen (@BrendanPedersen) December 17, 2024
Her departure comes as the industry continues to advocate for transparent and balanced regulatory approaches. Companies like Coinbase and Ripple have openly criticised Crenshaw's perceived hostility toward crypto innovation.
Despite her firm stance on prioritising investor safety, her approach has left a legacy of frustration among major players in the digital asset space.
Community Celebrates Crenshaw's Renomination Vote Getting Scrapped
The Senate's move to cancel Caroline Crenshaw's renomination signals a shift in Washington's approach to crypto regulation, reflecting growing dissatisfaction with her hardline stance.
As cryptocurrency emerges as a key political issue, her uncompromising methods seem increasingly out of step with the changing landscape.
Tim Scott (R-S.C.), the incoming Senate Banking Committee Chair, welcomed the news with an emphatic, "Praise the Lord," after Punchbowl News reported the cancellation—the second time Crenshaw's vote has been scrapped.
Writing a story quoting someone saying a vote is "deader than disco" was not on my Bingo card for this year
Earlier reported by Punchbowl News, reaction story here: https://t.co/NlGZu3jCrk
— Sarah Wynn (@ForTheWynn_) December 17, 2024
When enquired about the news at the Blockchain Association Policy Summit, he said:
"It's common sense. Let the Trump administration make their choices and listen to the voters most importantly."
Scott added:
"What we saw from the SEC, including [SEC Chair Gary] Gensler, as well as Crenshaw, was exactly the opposite."
Crenshaw Could Still Be Renominated; is Victory Premature?
The crypto community may be celebrating Crenshaw's exit, but popping the champagne might be premature.
🚨 BREAKING: The Senate Banking Committee has just pulled the plug on SEC Commissioner Caroline Crenshaw's renomination!
Many in the crypto world see this as a win, calling her stance even more "anti-crypto" than SEC Chair Gary Gensler. #SEC #CryptoNews pic.twitter.com/rNFI9G1sG3
— CLONE sosa king jr 🐉 (@sosakingkv) December 17, 2024
Crenshaw remains on the SEC commission until a replacement is confirmed or until Congress adjourns next year.
Traditionally, the minority party — in this case, the Democrats — recommends nominees for minority seats on the commission, as noted by Fox Business journalist Eleanor Terrett.
🚨NEW: So now what?
Crenshaw is still on the commission and has the ability to serve until her replacement is confirmed, or until Congress adjourns next year.
Per Congressional process, the minority party (in this case it will be the Democrats) usually recommends nominees to… https://t.co/3bnGLw8wHO
— Eleanor Terrett (@EleanorTerrett) December 17, 2024
However, the President is not obligated to follow their suggestions.
Despite widespread applause from crypto advocates, it is possible that Democrats, with backing from figures like Elizabeth Warren, could propose Crenshaw for renomination.
Ultimately, Trump will decide whether to keep her in the mix.
Crenshaw's anticipated exit, alongside SEC Chair Gary Gensler and Commissioner Jaime Lizárraga, signals a significant shift at the agency in early 2025.
Once these departures take effect, the SEC will be left with three Republican commissioners — Mark Uyeda, Hester Peirce, and recently-appointed Chair Paul Atkins — to lead the agency.
However, by law, at least two Democratic commissioners are required to maintain bipartisan balance.
For the crypto industry, Crenshaw's departure is a rare win in a regulatory landscape that has long felt adversarial.
WHEN WE STAND WITH CRYPTO, WE WIN 🛡️
After receiving over 100K emails from Crypto Advocates, the Senate has decided NOT to move forward with Caroline Crenshaw's nomination.
Another reminder that your voices matter and that the future is ours. https://t.co/auvNNv5Cab pic.twitter.com/pE1fFtqCZb
— Stand With Crypto🛡️ (@standwithcrypto) December 17, 2024
The timing is no coincidence, as analysts predict the Trump administration will adopt a more crypto-friendly stance.
Trump has been openly critical of the SEC's aggressive enforcement approach, calling it detrimental to business and innovation.
His nomination of Atkins, a known libertarian and advocate for crypto, as the new SEC Chair underscores this potential policy shift.
Still, while the celebrations continue, one question lingers: Is this victory too soon to call?
This is great news for the industry
We need people betting on America, not against innovation in America
— Boz 🛡️ (@boz_menzalji) December 17, 2024