Caroline Crenshaw is out. The SEC commissioner, famous for her anti-crypto stance, won’t be getting a second term. The Senate Banking Committee abruptly canceled tomorrow’s scheduled renomination vote. Just like that, one of crypto’s most vocal adversaries is off the field.
Crenshaw’s four-year run in the U.S. Securities and Exchange Commission (SEC) left a trail of tension, frustration, and courtroom battles. Appointed in 2020 under President Donald Trump, she quickly turned into a regulatory thorn for the crypto industry.
Her opposition to Bitcoin ETFs earlier this year might’ve been the final straw. Crenshaw often said that crypto markets were “petri dishes of fraud.” Critics argue she spent her entire term proving that theory instead of helping regulate the space constructively.
Coinbase CEO Brian Armstrong wasn’t subtle about it, saying she was “worse than Gensler.” He added that: “Her policies hurt more than they helped.”
Crenshaw’s crypto blockade
Caroline Crenshaw made headlines in January when she voted against approving spot Bitcoin ETFs. It was a critical moment for crypto. Years of effort by major firms, court battles, and rising public demand pushed Bitcoin ETFs to the center of the financial world. Crenshaw, though, was unmoved.
She voted no, citing fears of market manipulation and inadequate investor protections. She wasn’t alone, but the industry wasn’t having it. A federal court had just ruled that previous SEC rejections were “arbitrary and capricious,” a decision that made Crenshaw’s refusal look like stubbornness at best — hostility at worst.
Ripple Chief Legal Officer Stuart Alderoty was among the first to speak out. “Her position was indefensible after the courts ruled against them,” he said.
Crenshaw once described crypto markets as dangerous playgrounds for fraudsters and manipulators. “Investor safety has to come first,” she said repeatedly.
Crypto’s war with the SEC loses two key players
Under Crenshaw’s watch, SEC enforcement actions ramped up, targeting platforms like Coinbase and Binance for alleged securities violations. The industry’s complaints were loud: regulations were unclear, inconsistent, and overly punitive.
Crenshaw disagreed. She argued crypto firms were ignoring laws that had existed for decades. “The rules are clear,” she said in one meeting, “crypto needs to follow them.”
Leaders like Tyler Winklevoss, CEO of Gemini, accused the SEC of losing credibility under its Democratic leadership. He pointed to Crenshaw’s role in escalating the regulatory war. “The SEC has become hostile, and it’s holding back innovation,” he said.
To many, her policies raised costs and uncertainty without solving the problems she claimed to fight. Compliance requirements tightened. Lawsuits mounted. And innovation? It either slowed or moved offshore.
The Senate’s decision to cancel her renomination suggests those complaints finally resonated. With crypto becoming a bigger political issue, it’s clear Crenshaw’s hardline approach didn’t age well in Washington.
SEC Chair Gary Gensler, her closest ally in cracking down on crypto, recently announced he’s stepping down on January 20, 2025 — the same day President-elect Donald Trump takes office. Gensler’s resignation aligns with Trump’s goal to overhaul financial regulators and reverse “overreach.”
For crypto, it’s a rare win in a regulatory battle that’s felt one-sided for years. The timing is no coincidence. Industry analysts believe Trump’s incoming administration will take a softer approach to crypto. Trump himself has criticized the SEC’s aggressive enforcement strategy, calling it bad for business and innovation.
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