The Securities and Exchange Commission (SEC) is facing a new phase of reforms as the Senate recently blocked the renomination of Caroline Crenshaw to the commission. This decision came after a strong pushback from crypto supporters, with over 107,000 emails from advocates influencing the Senate’s decision against the commissioner known for her anti-crypto stance.
In a recent meeting with staffers for SEC commissioners Hester Peirce and Mark Uyeda, the Digital Chamber’s Token Alliance emphasized denouncing the 2018 Hinman speech as a top priority for the Corporation Finance division. They cited the speech’s lack of relevance to the Howey test, creating market confusion and improperly establishing a winner/loser dynamic.
With Crenshaw now out, the crypto industry is wasting no time in suggesting names of pro-crypto Democrats to fill the minority seats on the commission. The upcoming SEC reforms under the Trump administration could potentially change how cryptocurrencies are regulated, as Paul Atkins, Trump’s pick for SEC Chair, has shown support for crypto.
The Token Alliance is urging the SEC to review current investigations and halt cases that lack evidence of fraud. The search for Crenshaw’s successor is focused on finding a Democrat, with top choices including Georgetown law professor Chris Brummer and Anchorage Digital’s TuongVy Le. Senator Cynthia Lummis believes that 2025 will be a significant year for Bitcoin, with the possibility of David Sacks becoming a crypto czar.
The new SEC reforms aim to remove SAB 121 and revise rules regarding decentralized finance (DeFi) exchanges. The Digital Chamber has proposed policy changes to foster a more positive relationship between crypto market participants and the agency, potentially reshaping digital asset trading.
Overall, the Senate’s decision to block Crenshaw’s renomination signals a shift in the SEC’s approach to crypto regulations, with potential changes on the horizon under the Trump administration. The crypto industry is closely watching for further developments that could impact the future of digital asset trading.