SEC Loses Last Democratic Voice as Crypto Regulation Shifts Under Scrutiny

A lone Democratic voice at the SEC is gone—just as the agency softens its stance on **cryptocurrency**. Will Congress step in to challenge the shift?

, and Administrator

2026 January 3 . 11:19 PM

1 min read

SEC Loses Last Democratic Voice as Crypto Regulation Shifts Under Scrutiny

Caroline Crenshaw has stepped down from her role as a Democratic commissioner at the US Securities and Exchange Commission (SEC). Her exit leaves the agency with no Democratic members for the first time in years. The move comes as the SEC faces growing scrutiny over its shifting approach to cryptocurrency regulation.

Crenshaw served over five years at the SEC, where she frequently voiced concerns about investor risks in digital assets. She opposed efforts to loosen cryptocurrency rules and warned of potential market abuses. Her departure on Friday now leaves the commission with three Republican members, altering its balance at a pivotal moment.

The SEC has recently scaled back enforcement in the crypto sector, dropping or pausing several high-profile cases. This shift has coincided with increased industry consultations and a broader push toward relaxed oversight. The changes have drawn criticism from lawmakers, including Representative Maxine Waters, who has demanded congressional hearings on the agency’s policy reversals.

No successor has been named to replace Crenshaw, and President Donald Trump has not signalled plans to nominate a Democratic replacement. Without action, the commission could remain without a Democratic voice for months.

Crenshaw’s resignation reshapes the SEC as it navigates evolving cryptocurrency policies. The absence of a Democratic commissioner may influence future rulemaking and enforcement decisions. Meanwhile, calls for congressional oversight of the agency’s recent actions continue to grow.