Massachusetts Senator Elizabeth Warren will have significant influence in selecting the person to fill the commission vacancy open for the SEC by Democratic Party leadership. Three sources aware of the discussions within the Democratic Party stated that Warren had a say in this process.
Vacancy in SEC Commission
The SEC can consist of a maximum of three commissioners from the same party. Currently, two Democratic commissioners are leaving their positions in January, including Chairman Gary Gensler and Commissioner Jaime Lizárraga. Trump has nominated Republican Paul Atkins as SEC Chairman to replace Gensler. Therefore, the remaining two commissioners must be Democrats, independents or third-party members.
The Senate Banking Committee will decide next Wednesday whether to reconfirm Democratic Commissioner Caroline Crenshaw. This could fill a member vacancy for the commission. However, there is still at least one other Democratic commissioner.
Warren’s Crypto Regulations
Warren is known as one of the harshest critics of cryptocurrencies in the Senate. He advocates tightly regulating the industry in the name of consumer protection and national security. In 2022, Warren was working on legislation that would make most cryptocurrency tokens securities and transfer crypto oversight to the SEC, but the legislation did not pass in the Senate.
While Democratic Minority Leader Chuck Schumer usually has the right to choose the commissioners, this time he is giving the power to Warren to test whether she can find a candidate who is moderate enough to be confirmed by the Republican-majority Senate.
“Elizabeth, we tried your method and it didn’t work; now we are continuing with it my way,” says a source.
Warren’s influence in SEC commission selection has increased as a result of complex political trade-offs within the Democratic Party. Warren’s enduring power within the party and SEC audits could have negative effects on the crypto industry.
Eventually, this is expected to lead to the implementation of strict regulations for the crypto industry. Under Warren’s influence, it seems likely that stricter regulations will be introduced at the SEC commission.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
