US Groups Oppose SEC ‘Purge’ of Democrats

Over 40 organizations and associations in the United States have urged the Senate to confirm Democratic Party representative Caroline Crenshaw for another term as a commissioner of the SEC.

“The reality of a bipartisan Commission is at stake. The incoming [Donald] Trump administration has indicated it is considering abandoning the tradition whereby the opposition party selects candidates for the two minority seats,” the letter states.

The SEC’s charter stipulates that no more than three of the five commissioner positions can be held by representatives of one party. However, the letter’s authors suggest that the president-elect’s team might simply leave two seats vacant, granting Republicans control over the agency for the next five years.

SEC Chairman Gary Gensler announced his resignation effective January 20, 2025, the day of Trump’s inauguration. Commissioner Jaime Lizárraga will depart the agency on January 17.

Crenshaw, whose term expires in 2024, remains the only Democrat prepared to continue serving.

The current SEC commissioners include Republican appointees “Crypto Mom” Hester Peirce and Mark Uyeda.

Trump has officially nominated Bitcoin advocate Paul Atkins as the head of the Commission. The choice of the 47th president of the United States has been welcomed both in the crypto industry and in the Senate, where Republicans will gain the majority on January 3.

Democrats still have the opportunity to extend Crenshaw’s term to ensure at least one of their representatives remains in the SEC.

Regarding cryptocurrencies, Crenshaw has taken an even tougher stance than Gensler. In January, she voted against the approval of spot Bitcoin ETFs and publicly criticized the Commission’s decision. Prior to this, she staunchly opposed Peirce’s proposal for a “safe harbor” for ICO projects.

“Crypto Mom” has already outlined the key areas the SEC needs to address in regulating the digital asset industry following Gensler’s departure.