Caroline Crenshaw, an anti-crypto SEC Commissioner, faces a delay in her renomination until after the US 2024 elections.
The Senate Banking Committee, led by Democrats, will likely approve her nomination. However, the total Senate vote will probably be delayed because few legislative days are left, and Senate Majority Leader Chuck Schumer has other important matters to address.
Uncertainty Over Renomination Timing
Fox Business journalist Eleanor Terret reported that Crenshaw’s renomination process faces uncertainty due to potential changes in the Senate and the White House. A new administration could immediately designate a new SEC Chair, affecting Crenshaw’s position.
NEW: Re next steps for the renomination of Caroline Crenshaw to the @SECGov — I’m told she will likely get “voted out of Committee” which means her nomination will get a “yes” from the Dem-led Senate Banking Committee. But she then has to get through a full Senate vote which…
— Eleanor Terrett (@EleanorTerrett) July 12, 2024
Crypto lawyer Mike Selig highlighted that a new administration could strip current SEC Chair Gary Gensler of his power, though he might remain a commissioner.
Terret noted that if Crenshaw is confirmed and Gensler stays, the SEC would maintain a Democratic majority. Even if former President Donald Trump promotes Hester Pierce to the chair, Democrats would still hold a 3-2 majority on the Commission.
Caveat: If Caroline gets through and Gary decides to stay, there will still be a Democrat majority at the Commission. Trump could promote Hester to Chair (her term is up in 2025) but there would still be a 3-2 majority for the Dems.If Trump wins, he can’t force Gary to leave,… https://t.co/9no4TPMOQJ
— Eleanor Terrett (@EleanorTerrett) July 12, 2024
In a recent discussion, Senator Bill Hagerty questioned Crenshaw on her opposition to approving spot Bitcoin ETFs earlier this year. Crenshaw emphasized the need to assess the public interest in individual exchange-traded products (ETPs) and expressed concerns about significant fraud in global spot markets.
Hagerty criticized Crenshaw’s stance, describing it as detrimental to an “important emerging technology.” He also accused her of using her SEC position to advance climate positions, which he argued was beyond the agency’s remit.
Crenshaw is well-known for her strong opposition to cryptocurrencies, especially against spot Bitcoin ETFs earlier this year. Her views have made her a significant obstacle for the crypto industry, even more than SEC Chair Gary Gensler. Critics say Crenshaw’s strict stance on crypto regulation holds back the industry’s growth and innovation.
In response to anti-crypto sentiments within the SEC, the advocacy group Stand With Crypto has been actively promoting pro-crypto policies.
On July 10, the group organized meetings on Capitol Hill, where crypto founders engaged with lawmakers to advocate for supportive legislation. Stand With Crypto emphasized the importance of these initiatives, especially in an election year when policy decisions are critical.
The postponement of Crenshaw’s renomination increases the uncertainty about how crypto will be regulated in the US. The outcome of the 2024 elections could greatly impact how the SEC deals with digital assets. The crypto industry will closely monitor how things unfold politically to see how the SEC and regulations will change.
Impact on Crypto Regulation
The continuous struggle between regulators and the rapidly developing cryptocurrency business is highlighted by the potential shift in SEC leadership and the postponement of Crenshaw’s renomination.
The approaching elections will greatly impact future bitcoin regulations in the United States and the SEC. These elections may determine the laws and the SEC’s approach to the burgeoning cryptocurrency market.
The result will be crucial for everyone in the crypto community, as it could drastically alter how cryptocurrencies are regulated. This time is pivotal for both the SEC and the crypto industry, with many closely observing to see what happens next.
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