President-elect Donald Trump stands poised to appoint two new members to the Securities and Exchange Commission (SEC), filling vacancies left by Caroline Crenshaw and Jaime Lizárraga, a Democrat.
This shift may lead to a Republican majority at the SEC, aligning it more closely with Trump’s campaign commitment to establish the U.S. as “the crypto capital of the planet.”
Explore: Senate Banking Committee Cancels Crenshaw’s SEC Reappointment
Potential Shifts in SEC Leadership
The SEC is facing a pivotal change in its political and ideological landscape. The influential lobbying efforts by the crypto sector that contributed to blocking the reappointment of Democratic Commissioner Caroline Crenshaw demonstrate this shift!
This decision marks the end of her tenure and highlights the increasing power of crypto advocacy groups in directing regulatory policies.
Chair Gary Gensler is set to resign effective January 20, 2025, coinciding with Trump’s inauguration. His departure creates an opportunity for Trump to nominate leaders more sympathetic to the crypto industry.
Trump has already expressed his intention to appoint Paul Atkins, a former SEC commissioner known for his pro-crypto views, as Gensler’s successor.
Atkins has been critical of the SEC’s approach, which often relies on enforcement actions rather than establishing clear regulatory frameworks for digital assets.
BREAKING: Trump appoints pro-crypto Paul Atkins as new chair of the SEC.
Low Cap Memecoins 1000x pic.twitter.com/RYQmd9P74C
— Mr. BIG WHALE (@MrBigWhaleREAL) December 3, 2024
If confirmed, he is likely to pursue a more cooperative strategy with the crypto industry, emphasizing innovation alongside investor protection.
Beyond Atkins, Trump has the chance to fill two additional SEC positions—those formerly held by Crenshaw and Lizárraga, the latter of whom has also announced his resignation before Trump takes office.
The incoming Trump administration is anticipated to take a distinctly different regulatory path.
Republican commissioners like Hester Peirce and Mark Uyeda have consistently pushed for regulatory clarity tailored to digital assets, rather than applying outdated securities laws meant for traditional financial markets.
Crenshaw’s Strong Backing of Gensler
The Senate Banking Committee has canceled a planned vote on Caroline Crenshaw’s reappointment as an SEC commissioner.
Originally slated for December 18, 2024, the markup session was also meant to discuss the nomination of Gordon Ito to the Financial Stability Oversight Council. However, both votes were unexpectedly shelved, as announced on December 17, 2024.
This cancellation casts uncertainty on Crenshaw’s prospects for a second term at the SEC before Republicans take control of the Senate this month.
Crenshaw, a Democrat appointed to the SEC in 2020 and subsequently renominated by President Joe Biden, has been a strong advocate for Gensler’s tough regulatory stance on crypto.
Her record includes opposition to spot Bitcoin ETFs and consistent warnings about fraud and manipulation in the crypto markets, making her a target for crypto industry advocates who view her as a symbol of excessive regulation.
Organizations like the Blockchain Association, DeFi Education Fund, and Cedar Innovation Foundation have publicly rallied for the cancellation of her reappointment vote.
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The article titled “Will SEC Have No Democratic Commissioners with the New Administration?” first appeared on 99Bitcoins.
