The Senate Banking Committee postponed its vote on Caroline Crenshaw’s renomination to the SEC, raising doubts about her future at the agency. With time running out on the congressional calendar, the delay could lead to big changes at the SEC. What caused this holdup, and what happens if her term ends?
The Vote That Didn’t Happen
The committee was supposed to vote on December 11, 2024, to decide whether Crenshaw would get another term. But at the last minute, Senator Sherrod Brown, the committee’s chair, called off the meeting. No real explanation was given. When Brown tried to reschedule for later that day, Republicans blocked the effort.
Now, there’s not much time left. If Congress doesn’t act soon, Crenshaw’s term will expire, leaving the SEC with just three commissioners. All of them would be Republicans. This could change how the SEC approaches major issues, especially in cryptocurrency regulation.
Crypto Isn’t a Fan
One reason Crenshaw’s renomination is getting pushback is her stance on crypto. Many in the industry are unhappy with her opposition to Bitcoin ETFs and what they see as her tough approach to regulation. The CEO of famous crypto exchange Coinbase, Brian Armstrong, has urged senators to block her renomination calling her a “failure of an SEC Commissioner”.
This isn’t just about Crenshaw, though. It’s part of a bigger battle between the SEC and the crypto world. Crypto leaders want less oversight, and with Crenshaw gone, they might get it.
Politics Are in the Mix
This delay isn’t just about policy or crypto, though. Politics are playing a big role. Senator Tim Scott, the committee’s top Republican, accused Democrats of rushing Biden’s nominees before President-elect Trump takes office. He called it a “last-minute effort” to stop Trump from shaping the SEC.
Donald Trump could appoint someone else if Crenshaw’s renomination does not move forward. Names of other candidates for this position are already being floated. One name being in the highlights is Paul Atkins, a former SEC commissioner. He is well known for crypto friendly views. Such a shift would likely lead to a more business-friendly SEC, especially when it comes to crypto.
What Happens Next?
The committee needs to reschedule the vote, but with the congressional session wrapping up soon, time isn’t on Crenshaw’s side. With the expiration of her term, the SEC’s balance of power will shift immediately. That means a new commissioner could step in as early as January 2025.
All this fuzz is not just about Crenshaw or her being the commission of SEC. It’s more about the future of the SEC and how it handles emerging industries like crypto. The stakes are very high as the decisions made will pave the path for many years to come.
