SEC Commissioner Caroline Crenshaw has left the agency at the end of the 18-month period following her term in June 2024.
She quits after serving as the lone Democrat on the five-member bipartisan panel, even as members of the SEC commission have the option to serve an additional 18 months if they so want.
After a fantastic 2025 for cryptos on the laws front in the US, her departure signals another bumper pro-digital asset year on regulations.
The exit of Crenshaw results in the SEC now having three Republican appointees – Chair Paul Atkins, commissioners Hester Peirce and Mark Uyeda – who are recognized for their favorable stance on deregulation and enthusiasm for cryptocurrency.
Federal laws restrict the number of commissioners affiliated with the same political party to three.
Prior to filling the vacancies on the panel, it is essential for the White House and the Senate to come to an agreement on two nominees who are not affiliated with the Republican Party.
Since the resignation of Democratic Commissioner Jaime Lizárraga on January 17, 2025, the fifth seat on the commission has been unoccupied.
The Republican Party in Washington has shown a greater willingness to embrace the crypto industry compared to the Democratic Party.
After Trump's inauguration and Congress's moves on significant crypto legislation last year, the SEC changed its position.
The Senate is preparing for a markup vote on the proposal to create a framework for the crypto market, with the SEC currently composed entirely of Republican members, just one week into the new year.
The commission remains limited by its approach to establishing cryptocurrency regulations. It is essential to adhere to the specific processes involved in notice-and-comment rulemaking to avoid potential legal challenges for the SEC down the line.
However, analysts anticipate another exceptional year for cryptocurrency from the SEC.
Crenshaw was the last remaining SEC member to voice against the agency's January 2024 decision to allow Bitcoin exchange-traded funds (ETFs).
She had said that the decision "put us on a wrong path that might compromise the protection of investors."
The Senate Banking Committee decided to postpone a vote regarding Crenshaw's renomination in December 2025.
This development appears to follow significant efforts from the crypto sector, which aimed to have the commissioner known for skepticism towards crypto replaced.
To draw attention to her stance against the recent positive policy decisions and enforcement agreements pertaining to cryptocurrencies, industry groups and proponents for digital assets vigorously fought against Crenshaw's reappointment.
Towards the conclusion of her term, Crenshaw became the most vocal opponent of digital assets and the movement toward deregulation of the market on the commission.
She warned that the SEC's January 2024 approval of spot bitcoin ETFs may "further compromise investor protection" and criticized the move as "unsound and ahistorical."
In addition to criticizing the SEC's changing enforcement strategy – which included a settlement with Ripple Labs – Crenshaw maintained time and time again that loosening market regulations would weaken the safeguards for investors that have characterised the public markets in the United States for many years.
Her exit comes when the SEC is establishing enforcement priorities for tokenization, trading platforms, and retail access to complex strategies, as well as new laws for private markets, disclosures, and digital assets.
In its 2026 enforcement goals, the organization has already highlighted fiduciary standards and complex financial products as two of its main areas of concern.
With one commissioner no longer present to voice their disagreement, the three Republicans on the commission are in a prime position to shape the framework for regulation and compliance.
Republicans Run Everything
Republicans hold influence not just over the SEC but also over various other federal regulatory agencies.
Since September 3, 2025, one individual has been at the helm of the Commodity Futures Trading Commission. It began with Caroline Pham, the Acting Chair from the Republican side.
After an extended nominations process, Michael Selig received Senate approval on December 22, 2025, under the Trump administration, taking over the chair position from Pham.
As a result, there is still one Republican commissioner serving on the CFTC.
A similar situation was seen in March 2025 when Trump removed Democratic FTC commissioner Rebecca Slaughter, stating that her continued position was "inconsistent with the Administration's priorities."
The president has also dismissed three commissioners from the CPSC who were affiliated with the Democratic Party.
The Trump administration has managed to move forward with the dismissals in spite of the legal challenges.
The chorus-singing Trump administration looks to set new rules this year while the winds are in its favor, and cryptos seem to be at the centre of that plan.
