According to CoinDesk, U.S. Securities and Exchange Commission (SEC) member Caroline Crenshaw is facing significant opposition from various digital asset organizations as her nomination for another term is considered. Crenshaw, who is expected to be the sole Democrat leading the SEC when Republicans assume control of the agency in late January, has been criticized for her stance on cryptocurrency regulations. The Cedar Innovation Foundation, a group backed by undisclosed crypto interests, has launched a digital advertising campaign labeling Crenshaw as "even more extreme" than SEC Chair Gary Gensler.
Crenshaw's nomination, which was put forward earlier this year, has yet to be voted on by the Senate. The Senate Banking Committee has scheduled a hearing to discuss her nomination, amid efforts by several crypto organizations to block her approval. The Cedar Innovation Foundation highlighted Crenshaw's opposition to the approval of spot bitcoin exchange-traded funds and her description of crypto markets as a "petri dish" of fraud. The Blockchain Association and other lobbying groups have sent letters to Senate lawmakers urging them to reject Crenshaw's nomination. Her current five-year term has expired, and she is serving in a transitional period that could extend until the end of 2025.
The Senate Banking Committee is chaired by Sherrod Brown, an Ohio Democrat who lost his seat to blockchain businessman Bernie Moreno after being targeted by approximately $40 million in crypto-industry campaign spending. Despite this, Brown retains his position until the Senate changes leadership next year. The Blockchain Association has sent a letter to Brown and the committee's ranking Republican, Senator Tim Scott of South Carolina, arguing that Crenshaw's actions have undermined Congress's mandate to establish sound regulatory policies for cryptocurrency. The DeFi Education Fund has also expressed concerns, stating that Crenshaw's actions conflict with this mandate.
Ji Kim, the chief legal and policy counsel for the Crypto Council for Innovation, criticized Crenshaw's judgment, stating that she has not demonstrated the objective judgment required of agency leaders. Senator Scott has requested President Joe Biden to withdraw his outstanding nominations following the election, reiterating this request recently. The outcome of Crenshaw's nomination remains uncertain as the Senate Banking Committee prepares to deliberate on her future role within the SEC.
