Crypto lobby targets SEC’s Crenshaw ahead of Senate committee vote

The cryptocurrency industry is scrambling to block the renomination of Securities and Exchange Commission Carolyn Crenshaw, as the Senate Banking Committee prepares to vote on her confirmation for a second term at Wall Street’s top regulatory body.

Crenshaw, a Democrat, was appointed to the commission in 2020 by then-President Trump, and was renominated by Biden. If she is voted on Wednesday morning by the Banking Committee and then confirmed by the full Senate, she will be eligible to serve on the committee until June 2029.

Anti-Crenshaw lobbying is openly being exerted on social media, with top cryptocurrency executives condemning Crenshaw’s alleged anti-crypto record, warning that there will be future political repercussions if lawmakers vote to confirm her. A coordinated digital and mobile advertising campaign has been launched throughout the Washington, D.C., area, and industry advocacy groups are sending letters to Senate banking leadership expressing opposition to her reconfirmation.

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And just eight days before Congress adjourns for the year, Republicans say scheduling Crenshaw’s vote for Wednesday at 9:45 a.m. EST is a last-minute effort by Democrats to try to undermine the mandate voters gave Trump and Congress to restore the SEC to supporter. – Innovation and a pro-business agenda that includes creating a regulatory framework for digital assets. Republicans will remain in the minority until the next Congress begins in January.

“This 11th-hour push by Democrats to hack President Biden’s nominees is a blatant attempt to obstruct President Trump’s agenda,” Tim Scott, a Republican from South Carolina and the committee’s ranking member, said in a statement.

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A topic of discussion for cryptocurrency investors has been Crenshaw’s support for SEC Chairman Gary Gensler’s strict oversight of the $3 trillion digital assets industry. They also oppose it for describing cryptocurrency markets as “petri dishes for fraudulent behavior,” and for opposing the commission’s approval of Bitcoin spot trading funds on Wall Street.

“Caroline Crenshaw has been a failure as SEC commissioner and should be voted out,” Coinbase CEO Brian Armstrong said in a post on his X account on Friday evening. “I tried to ban Bitcoin ETFs and they were worse than Gensler on some issues (which I didn’t think was possible).”

In the same post, Armstrong said the cryptocurrency community will be closely monitoring the Senate Banking Committee vote, adding that Crenshaw’s support could negatively impact senators’ ratings on the closely watched Stand with Crypto platform. Ratings scalea service created by Coinbase’s advocacy group that ranks politicians based on their support for cryptocurrency-friendly legislation.

Such rankings were politically significant in the 2024 election cycle as the cryptocurrency industry’s political influence has grown with the massive rise in the value of digital assets over the past year that has provided seed money for campaign contributions. High ratings have been associated with more campaign money flowing to various candidates from anti-crypto political action committees like Fairshake, while low ratings often translate into PACs spending money on attack ads that oppose anti-crypto candidates or support their opponents. .

For example, Democratic Ohio Sen. Sherrod Brown was the target of political spending in the cryptocurrency industry when Verchack spent $40 million supporting his Republican opponent, Bernie Moreno. Moreno succeeded in unseating Brown, who had held the seat since 2007.

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Meanwhile, the nonprofit Cedar Innovation Foundation, an industry-backed group that advocates for the development of cryptocurrency and blockchain technology, on Monday launched a five-figure mobile advertising campaign in D.C. and across social media platforms, calling Crenshaw “more Fighting cryptocurrencies. From Gensler,” referring to its opposition to the Bitcoin ETFs that Gensler voted to approve.

On Monday, the CEOs of industry trade groups Blockchain Association and DeFi Education Fund formulated a Joint message To Senate banking leadership that opposes Crenshaw’s reconfirmation.

“Congress has a clear mandate from the American people to establish sound and reasonable policies regarding cryptocurrencies,” they wrote. “Unfortunately, Commissioner Crenshaw’s tenure at the SEC has been marked by actions that appear to contradict this charge.”

Crenshaw’s alliance with Gensler on progressive regulatory initiatives like the Climate Disclosure Rule, which aims to force public companies to disclose metrics on their carbon footprints, has also caused friction with Republican lawmakers who say the agency under Gensler has exceeded its congressional mandate by venturing into issues. Social issues such as climate change.

It is unclear how effective crypto lobbying efforts will be in blocking Crenshaw’s nomination. If all Democrats on the Senate Banking Committee show up and vote for it Wednesday morning, they will have the majority needed to pass it to a full Senate vote.

Chuck Schumer, the New York Democrat who will give up his role as Senate Majority Leader to John Thune of South Dakota next year, could hold a full Senate vote for Crenshaw next week amid finalizing the ongoing resolution to keep the government funded, and defense spending at 895. Billion dollars. Senate sources told Fox Business that the bill, in addition to voting on a group of Biden’s judicial nominees.

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These sources add that given all that is on the table, it is unclear whether Schumer would prioritize a vote on extending Crenshaw’s term even if it got out of committee.

A press representative for Schumer had no immediate comment.