Crenshaw’s Anti-Crypto Stance Sparks Debate in Senate Hearing

• SEC Commissioner Caroline Crenshaw’s renomination faces delays amid potential changes in Senate dynamics post-2024 elections.
• The confirmation of Crenshaw could maintain a Democratic majority at the SEC, impacting crypto regulation.
• Advocacy for pro-crypto policies intensifies amidst debates over SEC leadership and regulatory stance.

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.

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.

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.

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.