Anti-Crypto SEC Commissioner’s Term Expires in 41 Days – Will She Be Replaced?
Caroline Crenshaw, one of the five commissioners of the US Securities and Exchange Commission (SEC), may be leaving the financial regulator after nearly four years.
Starting April 25, President Joe Biden's administration will have 41 days to decide on a replacement for Crenshaw before her term ends on June 5. The commissioner was appointed by former President Donald Trump in 2020 to fill the seat vacated by the former SEC. Commissioner Rob Jackson, however, could continue to serve until the end of 2025 if no replacement is found.
During her tenure at the SEC, Crenshaw, a Democrat, was one of the most vocal anti-crypto voices. In January, she voted against the listing and trading of bitcoin (BTC) exchange-traded funds, saying the underlying markets were “corrupted by fraud and manipulation.”
“[I]It is well documented that many criminals use bitcoin to evade US financial sanctions,” Crenshaw said in January. “Many ransomware attacks demand payment in bitcoin, and analysis shows that these payments may end up funding our geopolitical rivals or adversaries.”
Crenshaw, Chairman Gary Gensler, and Commissioner Jaime Lizarraga supported efforts to redefine the term “dealer” in SEC regulations. Many in the crypto space have criticized the change as a threat to the industry, with the Blockchain Association filing a lawsuit against the SEC against the Texas Crypto Freedom Alliance.
Gensler, often the public face of the commission, has drawn the ire of many crypto users for his “mandatory regulation” approach to companies leading the commission. Many on social media believed that the SEC chairman was resigning after the controversial X post in April, but his term does not expire until 2026.
Related: Consensys Sues SEC and Commissioners Over Ether Regulation
The White House has sometimes released agreements with financial regulators days after the terms officially expire. For example, in June 2023, President Biden appointed Commissioner Mark Uyeda to serve a five-year term at the SEC. He took office in December 2023, about six months after his first term.
No choice for Crenshaw's replacement or her nominee appeared on the White House website at the time of publication. Any nominations will first go to the Senate for confirmation.
President Biden will have the option of appointing a Republican or a Democrat to fill Crenshaw's seat under SEC rules. It is not clear what effect her release may have on the regulation and performance of crypto. The commission has several ongoing lawsuits against crypto companies, including Coinbase, Binance, and Ripple.
Magazine: Crypto Regulation: Does SEC Chairman Gary Gensler Have Final Comments?
