Crypto Lobby Protests Caroline Crenshaw’s SEC Role Renewal
Caroline Crenshaw’s candidacy for another term at the SEC faces stiff resistance from crypto advocacy groups.
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Caroline Crenshaw’s candidacy for another term at the SEC faces stiff resistance from crypto advocacy groups.
Caroline Crenshaw’s renomination to the U.S. Securities and Exchange Commission (SEC) has been met with fierce resistance from the cryptocurrency industry.
Many in the sector criticize her as being too heavy-handed on digital assets, with some suggesting her policies outstrip even those of Gary Gensler, the current SEC Chair.
Caroline Crenshaw. Source: sec.gov
An anonymous group, the Cedar Innovation Foundation, reportedly funded by unidentified members of the crypto industry, is spearheading a campaign to block Crenshaw’s reappointment.
Crenshaw’s critics highlight her previous objections to spot Bitcoin ETFs and her characterization of the crypto space as a “Petri dish of fraud.”
The Senate Banking Committee is scheduled to convene on Wednesday, December 11, 2024, to address her reappointment. Should the Senate fail to act, she will maintain her position as acting commissioner until late 2025.
The Blockchain Association, along with other crypto-related advocacy groups, has added its voice to the growing resistance against her reappointment.
Related: The Most Influential Crypto Lobbyists
Letters have been sent to senators, advocating for the rejection of her candidacy. In one letter, directed to Senate Banking Committee Chairman Sherrod Brown and leading Republican Tim Scott, the Blockchain Association stated:
Her actions have undermined Congress's clear mandate to establish sound regulatory policies for crypto.
The surrounding political context only deepens the complexity of the situation.
Sherrod Brown, the current chairman of the committee, was once the subject of a $40 million campaign. That campaign ended with Brown losing his Senate seat to Bernie Moreno, a prominent blockchain entrepreneur. However, Brown will stay on as chairman until Republicans assume control in January.
Responding to the Blockchain Association's concerns, Senator Scott called on President Biden to postpone appointments until the White House transitions to new leadership.
The DeFi Education Fund aligned with Scott’s stance, stating that Crenshaw’s approach contradicts Congress's mission of encouraging fair and effective cryptocurrency regulation.
Ji Kim, the Crypto Council for Innovation’s chief legal and policy advisor, stated his concerns:
Commissioner Crenshaw has unfortunately not demonstrated the objective judgment required of agency leaders.
The decision on Crenshaw’s appointment has the potential to shape the SEC’s trajectory on cryptocurrency oversight for years ahead.
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