SEC Commissioner Caroline Crenshaw Leaves After Renomination Cancelled

TLDR

• Caroline Crenshaw left the SEC on January 2 after over five years as Commissioner
• The SEC now has three Republican Commissioners and no Democrats for the first time in years
• Crenshaw voted against all spot Bitcoin ETF approvals and criticized crypto settlements
• Her renomination was canceled following crypto industry pressure and Senate opposition

Caroline Crenshaw, the last Democratic member of the U.S. Securities and Exchange Commission (SEC), officially departed the agency on January 2. Her exit follows the expiration of her term in June 2024 and the Senate’s cancellation of her renomination vote in December 2024.

Crenshaw had served at the SEC for over ten years, including more than five years as a Commissioner. She was known for her strict stance on cryptocurrency regulation and frequently voted against digital asset-related proposals.

Chair Paul Atkins, along with Commissioners Hester Peirce and Mark Uyeda, acknowledged her departure in a joint statement. They wrote, “Commissioner Crenshaw has devoted more than a decade of distinguished service to the Securities and Exchange Commission.”

Departure Leaves SEC With Three Republican Members

Crenshaw’s exit leaves the SEC with only three sitting commissioners—all of whom are Republicans. The law allows no more than three commissioners from the same political party, so the commission cannot add another Republican unless a Democrat or Independent is also appointed.

This is the first time in years that the agency has operated without any Democratic representation. President Trump has not yet named a nominee to replace Crenshaw or Commissioner Jaime Lizárraga, who left in January 2025.

The Trump administration has previously delayed nominations for regulatory agencies, which has left key bodies like the SEC and CFTC operating below full capacity.

Crypto Pressure Influenced Crenshaw’s Exit

Crenshaw’s renomination was withdrawn following strong opposition from the digital asset industry and some lawmakers. The group Stand With Crypto organized a campaign that sent over 107,000 emails to Senate offices urging her removal.

Coinbase CEO Brian Armstrong publicly criticized Crenshaw in December 2024. “Caroline Crenshaw was a failure as an SEC Commissioner and should be voted out,” he wrote on X.

Crenshaw was known for her consistent opposition to crypto ETFs. She voted against the approval of spot Bitcoin ETFs in January 2024 and continued to vote against similar products even after court decisions limited the agency’s ability to block them.

Continued Opposition to Crypto Enforcement Settlements

Beyond ETF votes, Crenshaw also voiced opposition to settlements with crypto firms. When the SEC settled its long-running case with Ripple Labs in May 2025, she issued a dissent, stating that the deal weakened the agency’s enforcement posture.

“This settlement…does a tremendous disservice to the investing public,” Crenshaw wrote in her statement. She also raised concerns about the decline of crypto enforcement activities at the agency.

At a December 2025 Investor Advisory Committee meeting, Crenshaw again raised warnings, this time about tokenized securities. She questioned the reliability of wrapped products and the risks they may pose to retail investors.

Future Direction Under All-Republican Leadership

With an all-Republican panel, the SEC is expected to move faster on crypto-related rulemaking. Chair Paul Atkins has previously signaled plans to revise the agency’s approach to digital assets and reduce enforcement actions.

Analysts from TD Cowen’s Washington Research Group noted that a lack of bipartisan input could affect the durability of any rules passed. “If the rules are viewed as partisan, then a Democratic SEC is more likely to change them,” said Jaret Seiberg in a report.

Until the Senate confirms a new non-Republican commissioner, the SEC will continue operating below its full five-member capacity.

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