Industry objects to re-appointing SEC commissioner
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If you're reading this from Washington, D.C., you might have seen TV ads about the vote tomorrow to re-appoint SEC commissioner Caroline Crenshaw.
Why it matters: On the five-person commission where she was appointed in 2020, Crenshaw is widely seen as an ally of Gary Gensler, the securities regulator's outgoing chair who made no friends in the crypto industry during his tenure.
Catch up quick: Crenshaw's term is ending, but she's been renominated to serve another until 2029.
- Trade organizations have jumped in to raise objections, including Stand With Crypto, the Blockchain Association, the DeFi Education Fund and Coinbase founder Brian Armstrong.
The latest: The Cedar Innovation Foundation, a D.C.-based organization devoted to lobbying lawmakers about blockchain innovation, has purchased ads in the Washington, D.C., market urging senators to reject appointing Crenshaw again.
Background: Crenshaw worked on the SEC staff and, before that, was an attorney in private practice.
Zoom in: Many of those objecting to her re-appointment point to her dissent on the approval of the spot bitcoin ETF this year when she wrote:
- "Among the reasons that crypto markets – including bitcoin spot markets – appear to be Petri dishes of fraudulent conduct is because there is little to no systemic oversight of these markets."
- The "Petri dishes" reference is drawing a lot of attention.
Friction point: The likely future chair of the Senate banking committee, Sen. Tim Scott (R-SC), objected to the hearing in a statement, calling the timing a "blatant attempt to hinder President Trump's agenda."
- In November, he called on the current administration to drop all rulemaking and appointments relevant to the committee on which he is now the ranking member.
- Scott is likely to replace Senate banking committee chair Sherrod Brown of Ohio, who was defeated by GOP challenger Bernie Moreno.
Crenshaw did not reply to a request for comment from Axios.
- Better Markets, a public interest organization focused on financial markets, has endorsed her reappointment.
What we're watching: The markup meeting before the Senate banking committee is slated for 9:45am ET tomorrow.
