Regulation

Digital Chamber Urges US Senate To Reject Caroline Crenshaw’s SEC Reappointment

Published

2 weeks ago

December 10, 2024

The Digital Chamber (TDC), an organization representing industry leaders and advocates for clear regulation in the digital asset space, is urging the U.S. Senate to reject Caroline Crenshaw’s renomination for a second term as Commissioner of the Securities and Exchange Commission (SEC).

The Digital Chamber, which represents a diverse group of innovators and business leaders, cited several reasons for their opposition to Crenshaw’s reappointment, particularly her stance on cryptocurrency regulation.

Concerns Raised by the Digital Chamber Against Caroline Crenshaw

In a formal letter to the Senate Banking Committee, the Digital Chamber expressed its concerns about Commissioner Crenshaw’s tenure at the SEC. According to the organization, Crenshaw’s approach to digital assets regulation has been detrimental to market growth and innovation.

TDC claims that her actions have stifled industry progress and investor confidence, pointing to her dissenting opinion regarding the approval of spot Bitcoin exchange-traded products (ETPs). Crenshaw’s rejection of the Grayscale Bitcoin Trust’s (GBTC) application to convert into a spot Bitcoin ETP was specifically noted as an example of her negative view of the digital asset space.

The Digital Chamber argued that Commissioner Crenshaw’s regulatory actions have failed to align with the SEC’s core mission: protecting investors, ensuring fair markets, and fostering capital formation. The letter highlighted her use of outdated data and arguments in her dissent, which, according to the Chamber, did not reflect the maturity of the digital asset industry or the advancements made in market oversight and surveillance.

Other Crypto Industry Leaders Oppose Crenshaw’s Reappointment

Caroline Crenshaw’s reappointment has also garnered opposition from several other influential figures in the cryptocurrency sector. Brian Armstrong, CEO of Coinbase, criticized her tenure, claiming that her stance on cryptocurrency was more hostile than even that of SEC Chairman Gary Gensler.

Armstrong expressed frustration with her opposition to Bitcoin ETFs, which he believes could have provided broader access to crypto markets.

Bill Hughes, a lawyer at ConsenSys, echoed similar concerns. He suggested that Crenshaw’s renomination might be seen as politically motivated, particularly as the U.S. government begins to shift towards more crypto-friendly policies.

Shift Toward Crypto-Friendly Appointments

Recent appointments by the U.S. government, including the nomination of Paul Atkins to chair the SEC, reflect a broader shift toward more crypto-friendly leadership. Atkins, known for his support of the digital asset industry, is seen by many as a figure who could foster a more collaborative regulatory environment. This has led some to view Crenshaw’s position as increasingly out of step with the changing regulatory landscape.

David Sacks, the incoming Crypto Czar, also expressed concerns about the direction of regulatory crackdowns, particularly with the recent controversies surrounding “Operation Chokepoint 2.0.” As part of this shift, Sacks has called for further investigations into regulatory actions that could harm the crypto sector.

With the Senate Banking Committee set to vote on Crenshaw’s reappointment on December 11, the outcome of this decision could have significant consequences for the future of cryptocurrency regulation in the United States