Delayed Vote on Crenshaw Raises Possibility of All-Republican SEC
The Securities and Exchange Commission (SEC) may become entirely Republican-controlled next year, contingent on the confirmation of Commissioner Caroline Crenshaw.
The Senate Banking Committee postponed the vote to confirm Crenshaw, whose term ended in June. Late votes require unanimous approval, allowing Senate Republicans to block the decision. The rescheduling of the vote is pending.
If Crenshaw is not confirmed before the Senate adjourns next week, President-elect Donald Trump can nominate a replacement, adhering to the rule that no more than three commissioners belong to the same political party. Trump appointed Crenshaw in 2020, and President Biden renominated her this year.
Crenshaw can remain on the commission until January 2026 if no successor is confirmed.
Chair Gary Gensler and Commissioner Jaime Lizárraga, both Democrats, announced their resignations effective January.
Trump intends to nominate Republican Paul Atkins as chair. Following Gensler’s exit, he is expected to appoint either Hester Peirce or Mark Uyeda, both Republican commissioners, as acting chair during Atkins's confirmation process.
The delay in voting coincides with increased pro-crypto lobbying efforts in Washington, DC. Stand With Crypto, a non-profit organization initiated by Coinbase, expressed opposition to Crenshaw’s nomination, stating, “Anti-crypto regulators must not be confirmed.”
Democratic Rep. Shri Thanedar, who will abstain from voting on Crenshaw, welcomed the Senate's postponement, emphasizing the need for leaders who support crypto following the recent electoral mandate.
Advocacy groups are urging Senators to finalize Crenshaw’s second term, highlighting concerns over maintaining a bipartisan SEC. Public Citizen and 39 other organizations warned that the incoming Trump Administration might deviate from the tradition of allowing the opposition party to select candidates for minority seats.