Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesCopyBotsEarn
TD Cowen says SEC likely to forge on with crypto rules without Democratic commissioners in the new year

TD Cowen says SEC likely to forge on with crypto rules without Democratic commissioners in the new year

The BlockThe Block2024/12/15 16:00
By:The Block

Quick Take Following the departures of SEC Chair Gary Gensler and Jaime Lizárraga in January, Commissioner Caroline Crenshaw will be the sole Democrat at the agency. However, Crenshaw’s renomination has faced an uphill battle in the Senate.

TD Cowen says SEC likely to forge on with crypto rules without Democratic commissioners in the new year image 0

Democrats will likely not be at top posts at the U.S. Securities and Exchange Commission, giving way for Republicans to adopt crypto-related rules, according to TD Cowen. That scenario could also be risky, the investment bank noted.

Following elections in November, President-elect Donald Trump has tapped Paul Atkins to chair the SEC. Atkins will lead the agency alongside his fellow Republican commissioners, Hester Peirce and Mark Uyeda. Current Democratic SEC Chair Gary Gensler and Democratic Commissioner Jaime Lizárraga have said they will leave the agency in January.

That leaves current SEC Commissioner Caroline Crenshaw as the sole Democrat. Notably, no more than three commissioners can be in the same political party.

This comes as Crenshaw is facing an uphill battle to be nominated to serve another term. A vote to renominate her was set for last week during a Senate Banking Committee hearing but was delayed due to Republicans blocking the vote, according to the committee's Chair Sen. Sherrod Brown (D-Ohio).

"We believe it is increasingly likely that there will not be any Democrats on the SEC next year,"  TD Cowen Washington Research Group's Jaret Seiberg wrote in a note on Monday.

Some in the crypto industry have called for Crenshaw's removal, citing her dissent after the approval of spot Bitcoin exchange-traded products earlier this year. In her statement, Crenshaw warned of fraud, manipulation, and the potential for investors to falsely believe they had protections.

The Senate Banking Committee will meet again on Wednesday to vote on Crenshaw's nomination, according to reporting from Punchbowl News.

TD Cowen's Seiberg said an all-Republican commission would help Atkins push forward rules more quickly since Democrats wouldn't delay that process. However, there are also risks to bipartisanship that could affect future crypto regulation, Seiberg said.

"If the rules are viewed as partisan, then a Democratic SEC is more likely to change them," Seiberg said. "By contrast, bipartisan rulemakings likely create a regulatory regime that survives elections. We view that as providing the policy stability that would benefit crypto trading platforms, token issuers and the broader crypto sector."


0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!

You may also like

Solana-based social graph protocol Tapestry raises $5.75 million in Series A funding

Tapestry raised $5.75 million in a Series A round co-led by Union Square Ventures and Fabric Ventures.Tapestry is a Solana-based social graph protocol designed to create an ecosystem of applications with social features.

The Block2025/01/16 19:00

The Daily: Trump 'receptive' to an 'America-first' crypto reserve, XRP hits new all-time high and more

President-elect Donald Trump is open to creating an “America-first” crypto reserve prioritizing U.S.-based coins like USDC, SOL and XRP, the New York Post reported, citing sources familiar with the matter.XRP hit a new all-time high of around $3.39 via major crypto exchanges on Thursday for the first time since January 2018, following a 16% surge in 24 hours and a 455% rise over the past quarter.A Litecoin ETF is the “most likely” next spot crypto ETF to be approved in the U.S., according to Bloomberg anal

The Block2025/01/16 19:00

BTC breaks through $99,000

Cointime2025/01/16 18:01