Joe Biden Shares Intent to Renominate Anti-Crypto SEC Commissioner Caroline Crenshaw for a Second Term
Caroline Crenshaw voted strongly against the spot Bitcoin ETF and has previously voiced concerns about pseudonymity in DeFi.
- President Joe Biden plans to renominate SEC Commissioner Caroline Crenshaw for a second term.
- Crenshaw opposes the spot Bitcoin ETF and criticizes DeFi for lack of oversight and pseudonymity.
- Crenshaw’s renomination will maintain a strong anti-crypto presence within the SEC alongside Commissioner Jaime Lizárraga.
President Joe Biden recently announced his intent to renominate SEC Commissioner Caroline Crenshaw for a second term. Crenshaw is known for her anti-crypto stance, having opposed the spot Bitcoin ETF and criticized Decentralized Finance (DeFi).
Despite Gary Gensler’s support for the spot Bitcoin ETFs, Caroline Crenshaw and Jaime Lizárraga voted against it. If Crenshaw is renominated, the SEC will continue to have two commissioners with a strong anti-crypto stance, as Lizárraga’s term is far from expiring.
Crenshaw’s Spot Bitcoin ETF Sentiments
“The Global Spot Markets Underlying the Bitcoin ETPs are Marred by Fraud and Manipulation, Concentrated, and Without Adequate Oversight”
Crenshaw argued against the spot Bitcoin ETF by highlighting that Bitcoin trading occurs on global spot markets, where the SEC has limited visibility. She emphasized that the limited information available did not provide sufficient reassurance to merrit approval.
Her arguments against the spot Bitcoin ETF include concerns about wash trading. She cited one analysis indicating that wash trading could account for up to 77.5% of total trading volume on unregulated exchanges. Additionally, researchers estimated that wash trading was involved in over $4.5 trillion of crypto spot trading and $1.5 trillion in crypto derivatives.
She also argued that Bitcoin mining and ownership are highly concentrated and lack unified oversight.
“If the technology is so revolutionary, why do so many of its uses seem to revolve around recreating the existing financial system, except with less regulation, more opacity, fewer investor protections, and more risk”
Arguments Against DeFi
In 2021, Crenshaw issued a statement on DeFi, urging projects to voluntarily comply with existing regulations. She emphasized that adherence would reduce the need for SEC investigations and litigation.
Before launching, Crenshaw recommended that projects visit the SEC’s Strategic Hub for Innovation and Financial Technology (FinHub) to discuss digital asset issues with experts. She acknowledged that some projects might not fit the current regulatory framework and advised those cases to reach out directly to the SEC for guidance.
“Our staff cannot offer legal advice, but they stand ready to listen to ideas and provide feedback, as developers know their projects better than we ever could.”
While acknowledging the limitations of the current framework, she also emphasized that non-compliant projects would face enforcement actions.
One of her major concerns with DeFi was pseudonymity. She stated that U.S. investors have traditionally been comfortable with compromising a “limited degree of privacy by sharing their identity” with the SEC when trading securities.
Future of SEC’s Crypto Approach
The five-person SEC currently includes anti-crypto commissioners Caroline Crenshaw and Jaime Lizárraga, and pro-crypto commissioners Hester Peirce and Mark Uyeda. This creates a balanced 2–2 split, with Gary Gensler as the deciding vote on key issues.
Gary Gensler’s term as SEC Chair expires on June 5, 2026, which could lead to the appointment of a new chairperson. While President Biden has announced his intention to renominate Caroline Crenshaw, it remains uncertain if he will also renominate Gensler should he be re-elected.
