Caroline Crenshaw, one of the five members of the United States Securities and Exchange Commission (SEC), may be leaving her position at the financial regulator after approximately four years.
With President Joe Biden’s administration having until April 25 to decide, there are 41 days left to nominate a replacement for Crenshaw before her term ends on June 5. Crenshaw was nominated by former President Donald Trump in 2020 to fill the vacancy left by former SEC commissioner Rob Jackson. However, if no replacement is found, she may continue to serve until the end of 2025.
Throughout her tenure at the SEC, Crenshaw, a Democrat, has been known as one of the voices opposing cryptocurrencies. In January, she voted against approving the listing and trading of exchange-traded funds for Bitcoin (BTC), citing concerns about fraud and manipulation in the underlying markets.
Crenshaw stated in January, “It is well-documented that many criminals use Bitcoin to evade U.S. financial sanctions. Many ransomware attacks demand payment in Bitcoin, and analysis shows that these payments may end up funding our geopolitical rivals or adversaries.”
Crenshaw, along with Chair Gary Gensler and Commissioner Jaime Lizárraga, supported the redefinition of the term “dealer” under SEC rules. This change was criticized by many in the crypto industry, leading to the Blockchain Association filing a lawsuit against the SEC along with the Crypto Freedom Alliance of Texas.
Gensler, who is often the public face of the commission, has faced backlash from many crypto users for his “regulation by enforcement” approach to companies. There were rumors of his resignation after an ambiguous post in April, but his term does not end until 2026.
In the past, the White House has nominated names for financial regulators shortly after their terms officially ended. For example, President Biden nominated Commissioner Mark Uyeda in June 2023, and he was sworn into office in December of the same year, six months after his initial term ended.
As of now, there is no indication of a replacement or nomination for Crenshaw on the White House website. Any nominations would need approval from the Senate.
President Biden has the option to nominate either a Republican or Democrat to fill Crenshaw’s seat based on SEC rules. It is unclear how her potential departure could impact the regulation and enforcement of cryptocurrencies. The SEC currently has ongoing lawsuits against crypto firms, including Coinbase, Binance, and Ripple.