Crypto industry sounds off on SEC’s Crenshaw ahead of vote

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The Senate Banking, Housing and Urban Affairs Committee on Wednesday is set to vote on whether Caroline Crenshaw will remain an SEC commissioner.  

While the crypto industry has criticized SEC Chair Gary Gensler, crypto lobbyist group Cedar Innovation Foundation (and others) have called Crenshaw even more anti-crypto than him.

Coinbase’s Emilie Choi last week pointed out that Crenshaw “embarrassingly” opposed spot bitcoin ETFs. Those have amassed combined net inflows of $33.9 billion and counting.

Indeed, Crenshaw called the SEC’s approval of the products in January “unsound and ahistorical” — adding “they put us on a wayward path that could further sacrifice investor protection.”

Cody Carbone, president of The Digital Chamber, argued in a letter to committee members that Crenshaw — in her dissent on spot bitcoin ETFs — cited outdated studies and ignored the industry’s maturity. 

Judges ruled in August 2023 that the SEC had arbitrarily and capriciously denied such products after greenlighting bitcoin futures funds.

Crenshaw was sworn in as an SEC commissioner in Aug. 2020. Carbone pointed out what many have before: During her tenure, “the agency leaned heavily on a regulation-by-enforcement approach, creating an unpredictable environment that has stifled innovation and undermined investor confidence.”

I asked a representative for Crenshaw whether the commissioner has had any change of heart on bitcoin ETFs or the crypto space more broadly. I did not get an immediate response. 

Gensler said last month he would depart the SEC on Jan. 20 (Inauguration Day). Fellow Democrat Commissioner Jaime Lizárraga is also set to leave the agency that day. 

That leaves crypto-friendly Hester Peirce and Mark Uyeda as commissioners — with terms ending in 2025 and 2028, respectively. 

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