The U.S. Securities and Exchange Commission lost its only Democratic voice this week when Commissioner Caroline Crenshaw officially left the agency. The SEC announced her departure on January 2, 2026, with her term expiring January 3.
Her exit creates an unusual situation: for the first time in years, all three remaining commissioners are Republicans.
Crenshaw served at the SEC for over a decade, including more than five years as a commissioner since August 2020. Her term officially expired in June 2024, but she continued working in what’s called “holdover status” while waiting for the Senate to confirm a replacement. That replacement never came.
Failed Renomination Blocked Her Return
Crenshaw’s exit wasn’t unexpected. In December 2024, the Senate Banking Committee canceled a vote that would have given her another five-year term. The committee had scheduled the vote for December 18, but scrapped it the day before.
The timing mattered. Congress was set to adjourn on December 20, meaning there wasn’t enough time to reschedule. Without Senate action before the holiday break, her renomination failed.
The crypto industry played a major role in blocking her return. Over 100,000 people sent emails to Senate Banking Committee Chairman Sherrod Brown, urging him not to support her renomination. Industry groups like the Blockchain Association and Digital Chamber organized campaigns against her, including digital advertising and mobile billboards in Washington D.C.
Source: sec.gov
Coinbase CEO Brian Armstrong publicly called her “a failure as an SEC Commissioner” on social media. He said she “tried to block the Bitcoin ETFs, and was worse than Gensler on some issues.”
Her Strong Opposition to Crypto
Crenshaw earned a reputation as one of the SEC’s toughest crypto critics. Her most notable moment came in January 2024 when the SEC approved spot Bitcoin exchange-traded funds. She was the only commissioner to vote against them.
In her dissent, she called the approval “unsound and ahistorical” and warned it put the agency “on a wayward path.” She argued that Bitcoin products didn’t have enough protections for investors and that crypto markets lacked proper oversight.
Her opposition wasn’t limited to Bitcoin. The SEC held 13 internal votes on different crypto investment products. All 13 passed with a 3-1 vote, and Crenshaw was the single “no” vote every time. She also opposed approving an XRP ETF.
Throughout her tenure, she consistently emphasized investor protection over innovation. She cited security risks, price volatility, and what she viewed as weak regulatory oversight as her main concerns about digital assets.
An All-Republican Commission
With Crenshaw gone, the SEC now operates with just three commissioners: Chairman Paul Atkins, Commissioner Hester Peirce, and Commissioner Mark Uyeda. All three are Republicans. Atkins was sworn in as SEC Chairman on April 21, 2025, after being confirmed by the Senate.
This is unusual. The SEC typically has five commissioners, with no more than three from the same political party. Federal law actually prohibits more than three commissioners from belonging to the same party, which means the current Republican lineup is at its legal maximum.
In a joint statement, the three remaining commissioners thanked Crenshaw for her service. They praised her as “a steadfast advocate for the agency’s mission” and noted her background as a Major in the U.S. Army Reserve JAG Corps.
President Trump has not yet announced plans to nominate a Democratic replacement. Until the Senate confirms new commissioners, the three-person panel will make all enforcement and policy decisions. With fewer members, each vote now carries more weight.
Major Shift in Crypto Policy
The change in SEC leadership has already produced dramatic shifts in crypto regulation. Since Trump took office in January 2025, the SEC has dismissed or paused approximately 60% of its crypto enforcement actions.
The agency dropped cases against major platforms including Coinbase and Binance. It also suspended several other high-profile investigations into crypto companies. When Trump took office on January 20, 2025, Commissioner Mark Uyeda served as Acting Chairman until Atkins was confirmed.
Chairman Atkins launched an initiative called “Project Crypto” to develop clearer rules for digital assets. He appointed Commissioner Peirce, known in the industry as “CryptoMom” for her crypto-friendly views, to lead a new Crypto Task Force.
The task force has held several public roundtables on topics including crypto custody, decentralized finance, and tokenization. Atkins has stated publicly that he believes “most crypto tokens trading today are not themselves securities.”
This represents a complete reversal from the enforcement-heavy approach under former Chairman Gary Gensler, who stepped down on January 20, 2025, when Trump took office.
Congressional Pushback
Not everyone supports these changes. Representative Maxine Waters, the top Democrat on the House Financial Services Committee, has called for congressional hearings to examine what she calls the SEC’s “questionable policy changes.”
In a letter to committee leadership, Waters requested an oversight hearing with Chairman Atkins. She expressed concern about the dismissed enforcement cases and warned that weakening regulations could harm investors.
Waters compared the current regulatory rollback to conditions that existed before the 1929 stock market crash. She argued that the SEC appears to be operating as “an administration instrument” rather than an independent agency.
The Commodity Futures Trading Commission, another regulator that oversees digital assets, faces similar staffing challenges. It currently has just one commissioner, with four seats vacant.
The Road Ahead
Crenshaw’s departure marks a turning point for crypto regulation in the United States. The all-Republican SEC is expected to pursue a more industry-friendly approach, focusing on creating clear rules rather than enforcement actions.
Industry groups have welcomed the change, arguing that clearer regulations will help the U.S. become a global leader in digital asset innovation. Critics worry that reduced oversight could expose investors to fraud and market manipulation.
For now, the crypto industry has one less skeptic to worry about. Whether that’s good or bad for investors will likely become clearer in the months ahead.