Crypto Groups Push Ads, Letters to Oppose Democrat’s SEC Commissioner Nomination

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What to know:

  • Commissioner Caroline Crenshaw’s nomination to get another term at the Securities and Exchange Commission is the new lobbying target for a wide array of crypto groups who see her as an enemy.
  • The U.S. Senate Banking Committee is poised to consider her re-nomination, but whether she gets confirmed or not, Crenshaw is still on her way toward being the SEC’s lone Democrat for some uncertain period of time in early 2025.

As a seasoned crypto investor with over a decade of experience navigating the volatile and rapidly evolving landscape of digital currencies, I find myself both amused and concerned by the recent developments surrounding Commissioner Caroline Crenshaw’s re-nomination at the Securities and Exchange Commission.

According to a recently initiated digital advertising campaign by the Cedar Innovation Foundation, an organization believed to be backed by undisclosed cryptocurrency interests, U.S. Securities and Exchange Commission member Caroline Crenshaw is perceived as having stronger or more aggressive views compared to Chair Gary Gensler.

As a researcher, I find myself in a unique position as Commissioner Crenshaw, who will serve as the sole Democrat at the helm of the SEC once Republicans assume control of the agency and administration come late January. My nomination for another term was put forth earlier this year; however, the confirmation process hadn’t reached a vote prior to the November elections. Now, I eagerly await the scheduled hearing by the Senate Banking Committee on Wednesday, which will consider my current nomination.

Multiple digital asset organizations have taken action to prevent her appointment, with Cedar Innovation Foundation specifically stating that Crenshaw has been against the approval of bitcoin spot ETFs and has labeled crypto markets as a breeding ground for fraud. The Blockchain Association and other advocacy groups have written letters to senators requesting they reject the commissioner, whose term has already expired, leaving her in a temporary position that could extend until late 2025.

The committee overseeing banking matters in the Senate is headed by Sherrod Brown, a Democrat from Ohio who faced approximately $40 million in cryptocurrency-related campaign funding and lost his position to a businessman specializing in blockchain technology, Bernie Moreno. However, Brown retains control until the Senate undergoes a change of power the following year.

In a letter, the Blockchain Association expressed their concern to Brown and Senator Tim Scott (South Carolina’s ranking Republican) stating that her actions have contradicted Congress’s intent to create robust regulations for cryptocurrency. Similarly, the DeFi Education Fund asserted that Crenshaw’s actions are inconsistent with this mandate.

On platform X, Ji Kim, serving as the Chief Legal and Policy Advisor for the Crypto Innovation Council, expressed that Commissioner Crenshaw appears to lack the impartial decision-making expected of agency heads.

Scott made a request to President Joe Biden, asking him to withdraw any pending nominations following the election, and he repeated this plea last Friday.

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2024-12-09 23:12