The biggest criticism of cryptocurrencies is gone: SEC Commissioner Crenshaw resigns and leaves a fully Republican panel

Source: Yellow Original Title: The Biggest Criticism of Cryptocurrencies Is Leaving: SEC Commissioner Crenshaw Resigns and Leaves a Fully Republican Panel

Original Link: SEC Commissioner (SEC), Caroline Crenshaw, one of the most vocal critics of the agency towards the cryptocurrency industry, will step down on January 3, leaving the regulator with a fully Republican panel ready to drastically reshape digital asset oversight in the United States.

Crenshaw’s departure, announced on Thursday by SEC Chairman Paul Atkins, along with Republican commissioners Hester Peirce and Mark Uyeda, marks the end of over a decade of service at the agency for Crenshaw, who became a controversial figure in the crypto industry due to her consistent opposition to digital asset approvals and her firm stance on aggressive supervisory actions.

With Crenshaw’s exit, the SEC’s five-member commission is now fully composed of appointees from the Republican Party for the first time in years, a political shift that, according to cryptocurrency advocates, will accelerate the regulatory turn that has been underway since President Donald Trump returned to the White House in January 2025.

A History of Skepticism Toward Cryptocurrencies

Crenshaw established herself as one of the most firm voices within the SEC against relaxing regulations on cryptocurrencies, issuing high-profile dissents on key crypto policy decisions that garnered praise from consumer protection advocates and strong criticism from the digital assets industry.

In January 2024, when the SEC approved spot Bitcoin (BTC) ETF (ETF), pressured by a ruling from a federal court, Crenshaw was the only dissenter among the five commissioners.

In her dissent, she warned that the approval “puts the agency on a misguided course” and expressed concern that spot Bitcoin products were exposed to fraud and manipulation.

Crenshaw detailed an extensive list of concerns about investor safety, ranging from insufficient oversight of cryptocurrency markets to widespread wash trading, i.e., false transactions designed to artificially inflate trading volumes.

She warned that investors might mistakenly believe that SEC approval of Bitcoin ETFs implied an endorsement of the underlying asset.

Opposition to the Withdrawal of Crypto Oversight

More recently, Crenshaw became increasingly vocal about what she described as the SEC’s abandonment of its crypto oversight mission under the leadership of the Trump administration.

In May 2025, when the SEC filed a settlement agreement with Ripple Labs and two of its executives, effectively ending a years-long oversight case the agency had pursued in federal courts, Crenshaw issued a strong dissent that revealed the depth of internal divisions over crypto policy.

“This agreement, along with the systematic dismantling of the SEC’s crypto supervision program, causes significant harm to investors and undermines the role of courts in interpreting our securities laws,” Crenshaw wrote.

She warned that the agency was moving away from solid legal cases “to avoid a ruling that could undermine the agency’s new apparent mission to dismantle our crypto oversight program and erode investor protections.”

Industry observers had described Crenshaw as “a vocal skeptic of the digital assets industry and its regulatory compliance,” making her a target for cryptocurrency advocates who pushed for her removal during 2024 and 2025.

A Failed New Nomination Sealed Her Fate

Crenshaw’s departure came after the Senate Banking Committee canceled a vote on her new nomination in December 2024, effectively ending her chances of remaining at the agency beyond her term.

The cancellation followed intense pressure from the digital assets industry and lawmakers sympathetic to cryptocurrencies, who saw her as an obstacle to the Trump administration’s stated goal of making the United States the “crypto capital of the world.”

A Fully Republican Commission Signals a Policy Shift

With Crenshaw’s departure, the SEC is now composed exclusively of Republican commissioners: Atkins, who took office after the resignation of Gary Gensler in January 2025, along with commissioners Hester Peirce and Mark Uyeda, both known as regulators favorable to cryptocurrencies who criticized Gensler’s aggressive oversight approach.

This political composition marks a drastic shift for an agency that traditionally maintained a bipartisan balance.

According to traditional rules, the president’s party holds a majority of 3 to 2 on the five-member commission, and minority party representation ensures a certain degree of regulatory continuity across administrations.