Pressure on Senate to Act
Consumer advocacy organizations are asking the U.S. Senate to confirm Caroline Crenshaw for a second term at the Securities and Exchange Commission. A Dec. 12 letter signed by more than 40 organizations urged lawmakers to vote on Crenshaw’s nomination before the new Congress takes office in January.
Crenshaw’s term would expire in June 2024, but she could serve on them until 2029 if confirmed. Advocates were worried that lawmakers may run out of time to act after the Senate Banking Committee delayed its Dec. 11 vote, with the next congressional session beginning Jan. 3.
“At stake is the reality of a bipartisan SEC”, the letter said, reflecting concerns that the new administration would disrupt the Commission’s balance by ignoring tradition.
Tradition of Bipartisanship in Jeopardy
The SEC has always had a bipartisan composition: two members of the minority party among its five commissioners. Yet the administration of President-elect Donald Trump has indicated that it may break with that tradition, which raises fears of partisanship.
A Democrat, Crenshaw was first appointed in 2020 and is considered a steadying hand to help keep the SEC independent. Advocates say that if she isn’t confirmed, that could undermine the nonpartisan operations of the Commission.
Crypto Industry Criticisms
Crenshaw has been at odds with the cryptocurrency industry, which sees her as being heavy-handed on digital asset regulation. Some critics have accused her of being more “anti-crypto” than outgoing SEC Chair Gary Gensler, who announced he would step down on Jan. 20.
In January, Crenshaw voted against the approval of a spot Bitcoin exchange-traded fund, which still upsets crypto advocates to this day. Meanwhile, Trump’s campaign promise to fire Gensler and remake the SEC has created optimism among crypto boosters that change may finally come to the agency.
Leadership Challenges Loom
The departures of Gensler and Commissioner Jaime Lizárraga in January will leave Crenshaw as the only Democrat remaining at the SEC if not reappointed. Republicans Hester Peirce and Mark Uyeda will represent the majority, potentially altering the Commission’s direction.
Crenshaw’s confirmation is viewed as essential to preserving the SEC’s bipartisan makeup and addressing financial regulation challenges during this period of political transition.
