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Massachusetts Senator Elizabeth Warren will significantly impact the selection of a new Commissioner for the SEC, filling a vacancy on the commission. Three sources familiar with the discussions within the Democratic Party indicated that Warren holds a decisive voice in this process.
Vacancy on the SEC Commission
The SEC can consist of a maximum of three commissioners from the same party. Currently, two Democratic commissioners, including Chair Gary Gensler and Commissioner Jaime Lizárraga, are set to leave their positions in January. Trump has nominated Republican Paul Atkins to replace Gensler, meaning the remaining two commissioners must be Democrats, independents, or from a third party.
The Senate Banking Committee will decide next Wednesday whether to re-confirm Democratic Commissioner Caroline Crenshaw. This could fill one vacancy on the commission. However, at least one more Democratic commissioner is still needed.
Warren’s Stance on Crypto Regulations
Warren is known as one of the strongest critics of cryptocurrencies in the Senate. She advocates for strict regulation of the sector in the name of consumer protection and national security. In 2022, Warren worked on a bill that would classify most cryptocurrency tokens as securities and grant the SEC oversight of the crypto market, though the legislation did not pass the Senate.
Typically, Democratic Minority Leader Chuck Schumer has the right to select commission members, but this time, he has delegated that power to Warren, testing her ability to find a moderate candidate who could be approved by the Republican-majority Senate.
“Elizabeth, we tried your way, and it didn’t work; now we are moving with my approach,” says a source.
As a result of complex political maneuvers within the Democratic Party, Warren’s influence in the SEC commissioner selection has grown. Her sustained power within the party and the SEC regulations could negatively impact the crypto sector.
Ultimately, this situation is expected to lead to stricter regulations for the crypto sector. Under Warren’s influence, the SEC commission is likely to implement more stringent regulations.
