On May 9, 2025, during the fourth roundtable on crypto since March, SEC Commissioner Caroline Crenshaw – the only remaining Democrat – questioned whether the SEC under Trump was favoring blockchain too much, even intervening to 'pick winners and losers.' Is this a turning point or a risk for the market? Let's analyze.
Crenshaw Opposes: SEC Should Be Technology Neutral
At a meeting with participation from Wall Street 'giants' like BlackRock, Nasdaq, Fidelity, and Franklin Templeton, Crenshaw questioned the SEC's push to move traditional securities onto blockchain. She emphasized: 'No one disputes that the SEC should be a neutral technology agency. So why are we assessing different types of blockchain for industry application? Why focus only on blockchain and not other distributed ledger technologies?' She called this effort 'like the government picking winners and losers,' casting doubt on the motives when the SEC hosted an event at headquarters to support traditional financial companies.
Changing Context Under Trump
Under the leadership $TRUMP , the SEC shifted to a crypto-friendly stance, reducing litigation and encouraging blockchain. Chairman Paul Atkins opened, praising how blockchain could revolutionize the stock market with new applications, beyond current regulations. Tokenization is expected to enhance efficiency and accessibility, allowing instant payments (like stock transactions), instead of taking a day as it currently does.
Crenshaw's Critique: Risks from Speed
Crenshaw argues that the current delay of #WallStreet has benefits: it allows halting transactions in cases of fraud or national security risks, reducing 98% of transactions needing final settlement, helping the system withstand recent record trading volumes. She questions whether blockchain can handle all security transactions directly without crashing the network.
Contrasting View from Peirce
Commissioner Hester Peirce, head of the crypto group #SEC , agrees that blockchain has revolutionary potential like the internet, but acknowledges Crenshaw's concerns: 'As Crenshaw said, there is a reason not to always want to integrate instant crypto transactions with Wall Street.' However, she remains optimistic about the potential that needs exploring.
Impact on the Crypto Market
This event brings many signals:
Increase trust: Crypto fund inflows reached $3.4 billion last week, Bitcoin ETF attracted $1.8 billion, and is forecasted to accumulate $330 billion by 2029.
Driving innovation: Tokenization could support DeFi and altcoins like XRP ($2.31) or Solana ($146).
Legal challenges: If the SEC favors blockchain, a clear regulatory framework is needed to avoid risks.
Future Prospects
If the SEC balances policy in the next 1-2 years, blockchain could revolutionize finance, especially with Trump supporting crypto. However, Crenshaw is concerned about investor protection if the system becomes overloaded or lacks oversight.
Conclusion: Will Blockchain Shape the Future of Finance?
The SEC under Trump intensified blockchain efforts, but Crenshaw warns of the risk of overreach, while Peirce sees potential. With strong cash flow and promising tokenization, the crypto market could break through, although risks need to be considered. Investors should closely monitor to anticipate trends.
Warning of risks: Investing in crypto carries high risks due to price volatility and legal uncertainties. Consider carefully before participating.
