Senate Cancels Vote on SEC’s Caroline Crenshaw

The Senate Banking Committee has canceled its scheduled vote on the reappointment of SEC Commissioner Caroline Crenshaw, a notable critic of Bitcoin and other digital assets. The decision, first reported by FOX Business journalist Eleanor Terrett, deals a blow to Crenshaw’s future prospects, as Congress adjourns on December 20.

Crenshaw, known for her anti-crypto stance and opposition to Bitcoin spot ETFs, remains on the SEC but can only serve until a replacement is confirmed or Congress reconvenes in 2025. This cancellation casts doubt on her renomination, leaving the door open for the appointment of a more crypto-friendly commissioner under a potential Trump administration.

Industry and Political Pushback Against Crenshaw

The move follows mounting pressure from crypto leaders and industry-backed lobbying campaigns opposing Crenshaw’s reappointment:

1. Coinbase CEO Brian Armstrong: Criticized Crenshaw, labeling her tenure a “failure.” Armstrong argued that she attempted to block Bitcoin ETFs and positioned herself as even more problematic than SEC Chair Gary Gensler on crypto matters.
2. Cedar Innovation Foundation: Launched a five-figure ad campaign in Washington, D.C., branding Crenshaw “more anti-crypto than Gensler”.
3. Blockchain Association and DeFi Education Fund: Sent a joint letter urging Senate leadership to reject Crenshaw’s reconfirmation, highlighting her anti-innovation regulatory approach.

Armstrong also warned senators that supporting Crenshaw could negatively impact their scores on the Stand with Crypto scale, a political initiative assessing lawmakers’ crypto policies.

Crenshaw’s Controversial Stance on Crypto

Crenshaw’s tenure has been marked by strong opposition to digital assets. She described crypto markets as:

“Petri dishes of fraudulent conduct,”

Her dissent against the approval of Bitcoin spot ETFs further alienated her from crypto proponents, who argue her regulatory stance stifles innovation and investor access.

Critics also point to her alignment with Gensler on progressive policies, including the climate disclosure rule, which mandates public companies report their carbon emissions. Republican lawmakers argue such initiatives exceed the SEC’s regulatory mandate and divert focus from core financial oversight.

What Comes Next?

The stalled vote leaves Crenshaw’s fate uncertain. Traditionally, the minority party—currently the Democrats—proposes candidates for SEC positions, but President Trump (if re-elected) is not obligated to follow those recommendations.

This situation opens the possibility of a pro-crypto commissioner being appointed in 2025, signaling a potential shift in U.S. regulatory policy toward digital assets.

The cancellation of Caroline Crenshaw’s renomination vote reflects the growing influence of the crypto industry in Washington. With strong opposition from leaders like Brian Armstrong and industry-backed campaigns, the decision marks a victory for crypto proponents seeking regulatory clarity and innovation-friendly policies.

The industry now awaits the appointment of a commissioner whose stance aligns with fostering growth and regulatory balance in the evolving digital asset landscape.