Crenshaw, who began her term in August 2020 after being unanimously confirmed by the Senate, gained notoriety for her stance during the SEC’s consideration of Bitcoin ETFs earlier this year.
Brad Garlinghouse, the chief executive officer of Ripple, has recently voiced strong opposition to US Securities and Exchange Commissioner Caroline Crenshaw as she awaits reconfirmation of her position. Katie Biber, the chief legal officer at Paradigm, started the discussion by highlighting Crenshaw’s negative views on crypto assets in a series of social media posts titled “Why is anti-crypto SEC Commissioner Caroline Crenshaw poised for re-confirmation without even a peep from the Senate?”.
Concerns about Crenshaw’s Anti-Crypto Stance
In her posts, Biber accused Crenshaw of lacking respect for the law and attempting to hinder the progress of the crypto industry. A key example cited was Crenshaw’s opposition to the approval of Bitcoin spot exchange-traded funds (ETFs) in the United States.
Crenshaw, who began her term in August 2020 after being unanimously confirmed by the Senate, gained notoriety for her stance during the SEC’s consideration of Bitcoin ETFs earlier this year.
The SEC Commissioner, along with Jaime Lizárraga, opposed the introduction of Bitcoin ETFs into the market, citing concerns about fraud. Both executives voted against the funds, arguing that without proper oversight, such financial products could pose significant risks to investors.
At the time, Crenshaw described the crypto market as a “Petri dish of fraudulent conduct.”
In response to Biber’s posts, Garlinghouse called for more concrete actions from lawmakers to prevent Crenshaw’s reconfirmation. The SEC Commissioner may be reappointed to office later this week if there is no candidate to replace her.
Garlinghouse also disclosed that he raised the same point as Biber during a crypto roundtable hosted by Congressman Ro Khanna earlier in the week.
I made this point – emphatically – at the crypto roundtable this morning. Let's hope that we see action (and not just words)
— Brad Garlinghouse (@bgarlinghouse) July 10, 2024
Crenshaw’s Disregard for Legal Standards
Biber, in her quest to ensure Crenshaw did not get reconfirmed, cited another example of her disrespect for the law during the Grayscale Investments v. SEC case.
In this case, the DC Circuit Court of Appeals ruled 3-0 that the regulator failed to provide a “coherent explanation” for not approving Grayscale’s spot Bitcoin ETF application, accusing the financial watchdog of acting “arbitrarily and capriciously” in violation of the Administrative Procedure Act (APA).
Following this court ruling, SEC Chairman Gary Gensler accepted the court’s decision to approve Grayscale’s spot Bitcoin ETF application. However, Crenshaw remained defiant, with Biber accusing her of bending over backward to justify ignoring the Court’s clear orders.
Political Motivations behind Reconfirmation
Biber also suggested that Crenshaw’s potential reconfirmation may be politically motivated. He stated:
“This week, Crenshaw may be re-confirmed. Why? Folks need to be asking some hard questions: does her allegiance to shadow president Elizabeth Warren trump the rule of law? Does President Biden even know he nominated her again?”
She further claimed that the reconfirmation may be part of Gensler’s plan to ensure there is a majority of Democratic commissioners within the SEC by 2025.
Biber fears that these Commissioners would likely support continued or even strengthened regulatory oversight over cryptocurrencies and related financial innovations.
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