SEC Commissioner Crenshaw’s renomination faces time limit

Caroline Crenshaw’s reappointment as SEC Commissioner is uncertain with only five days left for the Senate to act. Delays, opposition from the crypto industry, and disagreements have made her confirmation a challenge. The outcome will impact cryptocurrency regulations and the Ripple case.

Crenshaw’s renomination is hanging in the balance as the U.S. Senate has just five days left before adjourning for the year. Delays, disagreements, and opposition from the crypto industry have turned her reappointment into a tight deadline challenge.

To confirm Crenshaw, two key votes are needed: one by the Senate Banking Committee and another by the full Senate. However, time is short.

Senator Sherrod Brown must give three days’ notice for a committee vote, and even if it happens soon, Senate Majority Leader Chuck Schumer will have just two days to schedule the full Senate vote. With the Senate focused on budget and defense bills, there’s little time left for Crenshaw’s nomination.

Recent delays have made things worse. On December 11, a committee vote was delayed due to scheduling rules. Republican Senators, led by Tim Scott, stopped a waiver that would have let the committee meet longer.

Now, Senator Brown must reschedule the vote, but with little time left, completing the entire confirmation process seems unlikely.

Crypto industry opposes Crenshaw

Crenshaw’s renomination faces strong opposition from the crypto community, with arguments that her strict regulations hurt innovation. She has been outspoken against spot Bitcoin ETFs and is skeptical about the crypto market overall.

The Digital Chamber, a group supporting blockchain and digital assets, has asked the Senate Banking Committee to reject Crenshaw’s renomination.

In a December 11 letter, they called for an SEC Commissioner who supports innovation while ensuring proper regulation. Coinbase CEO Brian Armstrong has also criticized Crenshaw, calling her a failure and urging lawmakers to block her reappointment.

The Cedar Innovation Foundation, a dark-money group linked to undisclosed crypto interests, has launched a digital ad campaign portraying Crenshaw as “more anti-crypto than Gensler.”                   

For Ripple and the SEC leadership

Crenshaw’s renomination is important for both the Ripple case and the SEC’s crypto policies. If reappointed, she could influence whether the SEC moves forward with its appeal in the Ripple case, with a deadline of January 15.

This situation is similar to former SEC Chair Jay Clayton’s decision to file the Ripple lawsuit before leaving. Current SEC Chair Gary Gensler, who is stepping down on January 20, might file the appeal brief as one of his last actions.

Additionally, Crenshaw’s renomination could affect the SEC’s future approach to regulating cryptocurrencies. If she isn’t reappointed, a new commissioner from former President Trump’s team could bring a more crypto-friendly perspective to the SEC.

Democrats push for confirmation

Democrats are in a hurry to confirm Crenshaw before they might lose their Senate majority in January. Some critics believe this rush is a strategic move to secure Crenshaw’s role and keep the SEC’s current approach to regulations in place.

Although Democratic senators support Crenshaw, the strong pushback from the crypto industry and delays in the process make her renomination uncertain.

If all the Democrats on the Senate Banking Committee vote for her, her nomination could move to the full Senate. But with limited time left and growing opposition, it’s unclear whether she’ll be confirmed.

Whether she stays at the SEC or is replaced will have a big impact on the agency, crypto regulations, and the ongoing Ripple case. The next few days are crucial in deciding the future of the SEC and its approach to cryptocurrency.

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