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Consensys Lawyer Makes Case Against SEC’s Caroline Crenshaw’s Renomination

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As the U.S. Senate Banking Committee prepares to vote on December 11 regarding the renomination of SEC Commissioner Caroline Crenshaw, Bill Hughes, a lawyer at ConsenSys, has raised concerns about her track record, particularly her stance on cryptocurrency regulation.

Bill Hughes argues that her renomination could be seen as a politically hostile act by the crypto industry, as her views are in stark contrast to the increasing support for crypto-friendly policies within the U.S. government, including the recent nomination of Paul Atkins as SEC Chair by President-elect Donald Trump.

Consensys Lawyer Concerns Over SEC’s Caroline Crenshaw’s

Bill Hughes has been a vocal critic of Crenshaw’s approach to crypto regulation. He pointed out that if the Senate votes to confirm her renomination, it would be seen as a significant step backward for the crypto industry. Hughes specifically referred to Crenshaw’s opposition to Bitcoin exchange-traded funds (ETFs), a move that has drawn widespread criticism.

In a dissenting opinion, Caroline Crenshaw argued that approving a spot Bitcoin ETF was “unsound and ahistorical,” a position that many in the crypto community have condemned.

Consensys lawyer Bill Hughes believes that Crenshaw’s opposition to such financial products is out of touch with the evolving landscape of the crypto market. He further highlighted that her views were at odds with the increasing momentum within the U.S. government to embrace crypto, a shift reflected in the nomination of Paul Atkins, who is seen as a pro-crypto figure and is set to replace Gary Gensler as the next US SEC Chair.

Crenshaw’s Dissent and the Crypto Industry’s Backlash

Caroline Crenshaw’s dissent against the approval of Bitcoin ETFs was a key moment in her tenure as SEC Commissioner. She questioned whether these products were even necessary, suggesting that blockchain technology itself could render such financial products obsolete.

Crenshaw’s stance has been widely criticized within the crypto industry, with many seeing her as a major obstacle to the broader adoption of crypto.

Industry leaders, including Coinbase CEO Brian Armstrong, have spoken out against her position, calling her opposition to Bitcoin ETFs “embarrassing.” James Seyffart, a Bloomberg ETF analyst, also weighed in, saying Crenshaw’s anti-crypto stance was even more vehement than that of SEC Chair Gary Gensler, who is also known for his tough approach to crypto regulation.

Paul Atkins and the Shift Toward Crypto-Friendly Leadership

Amid the criticism of Crenshaw, there has been growing support for Paul Atkins, nominated by President-elect Donald Trump to become the next SEC Chair. Atkins, who is seen as a pro-crypto figure, is viewed by many in the crypto industry as someone who will foster a more collaborative approach to crypto regulation. His nomination is seen as part of a broader shift in the U.S. towards more crypto-friendly leadership at the US SEC.

Atkins has a track record of advocating for market-driven regulations that do not stifle innovation. His appointment signals a significant departure from the more restrictive policies of the outgoing SEC leadership under Gary Gensler, whose tenure has been marked by aggressive enforcement actions against crypto companies. The appointment of Atkins has been welcomed by many in the crypto community, who hope it will pave the way for clearer, more favorable regulatory frameworks for digital assets.

Subsequently, the upcoming vote on Crenshaw’s renomination has put the Senate Banking Committee at the center of a critical decision. If the committee confirms her renomination, it could mean more years of stringent, anti-crypto policies at the SEC. However, with the nomination of Paul Atkins as SEC Chair, there is a growing hope that the U.S. will move towards a more balanced and progressive approach to crypto regulation.

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Kelvin Munene Murithi

Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Regulation

US SEC Drops Charges Against Hawk Tuah Girl Hailey Welch

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Hawk Tuah girl Hailey Welch, known for her association with the controversial $HAWK token, has been cleared of any wrongdoing after a lengthy investigation by the U.S. Securities and Exchange Commission (SEC). The SEC has decided not to press charges against Welch in connection with the rapid rise and subsequent collapse of the meme-based cryptocurrency.

US SEC Investigation Into Hawk Tuah Girl Concludes Without Charges

The SEC had launched an investigation into the $HAWK token after its dramatic price drop. The token, which was linked to Welch’s viral persona, initially saw a market cap surge to $490 million before crashing by over 90%. Investors who were impacted by the crash filed a lawsuit against those behind the project, alleging that the coin had been promoted and sold without proper registration.

Hawk Tuah girl Hailey Welch, who cooperated fully with the investigation, expressed relief after the SEC’s decision. “For the past few months, I’ve been cooperating with all the authorities and attorneys, and finally, that work is complete,” Welch told TMZ.

Her attorney, James Sallah, confirmed that the SEC had closed the case without any findings against her, adding that there would be no monetary sanctions or restrictions on Welch’s future involvement in cryptocurrency or securities.

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Kelvin Munene Murithi

Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Sonic Labs To Abandon Plans For Algorithmic USD Stablecoin, Here’s Why

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Barely a week after hinting at launching an algorithmic USD stablecoin, Sonic Labs is shuttering its plans. Sonic Labs co-founder Andre Cronje revealed that incoming stablecoin regulation in the US contributes to the change of stance.

Sonic Labs Makes U-Turn Over Algorithmic USD Stablecoin

In mid-March, Sonic Labs disclosed plans for a yield-generating algorithmic stablecoin for its blockchain. However, new developments in the US regulatory landscape are forcing the company to ditch its algorithmic stablecoin ambitions.

Sonic Labs co-founder Andre Cronje confirmed the change in direction via an X post following the release of the full draft of the STABLE Act by Congress for clearer oversight. According to the text, lawmakers are pushing for a two-year moratorium on algorithmic stablecoin, souring Sonic Labs plans.

Unlike mainstream stablecoins backed by fiat or other commodities, algorithmic stablecoins rely on smart contracts to maintain their peg. The 2022 implosion of Terra’s ecosystem following the de-pegging of its TerraUSD (UST) algorithmic stablecoin stunned regulators.

“We will no longer be releasing a USD-based algorithmic stablecoin,” said Cronje.

In a light-hearted note, community members teased potential strategies for Sonic Labs to sidestep incoming stablecoin regulation. Apart from the loophole of launching the algorithmic stablecoin before the regulation goes live, Cronje teased an algorithmic dirham that will be denominated in USD.

Industry Players Are Bracing For New Stablecoin Regulations

Stablecoin issuers are steeling themselves for incoming stablecoin regulations in the US. While the GENIUS Act and STABLE Act continue to inch forward, there are common denominators in both bills.

For starters, there is the requirement for equivalent reserves at a 1:1 ratio with both bills steering clear of algorithmic stablecoins. The White House is favoring the GENIUS Act over the STABLE Act as lobbyists rally to stifle the possibility of a Conference Committee.

Authorities are targeting stablecoin regulation to reach Trump in two months as issuers jostle for position. Tether, Circle, and Ripple are staking their claims to lead the US government’s ambitions to rely on stablecoins to maintain the dollar’s dominance.

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FDIC Revises Crypto Guidelines Allowing Banks To Enter Digital Assets

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The Federal Deposit Insurance Corporation (FDIC) has updated its guidelines, enabling banks to engage in cryptocurrency-related activities without seeking prior approval. This new policy shift signals a change in the FDIC’s approach to the growing role of digital assets in the banking sector.

New FDIC Guidelines on Crypto-Related Activities

The FDIC has issued a new Financial Institution Letter (FIL-7-2025), which provides updated guidance for banks looking to engage in cryptocurrency activities. The new guidance rescinds the previous policy set out in FIL-16-2022, which required banks to notify the FDIC before engaging in such activities.

Under the new rules, banks can now participate in permissible crypto-related activities without waiting for FDIC approval, as long as they manage the risks appropriately.

This change is seen as a shift in the FDIC’s stance, following the agency’s earlier stance that required prior approval for crypto engagements. FDIC Acting Chairman Travis Hill expressed that this new approach aims to establish a more consistent framework for banks to explore and adopt emerging technologies like crypto-assets and blockchain.

“With today’s action, the FDIC is turning the page on the flawed approach of the past three years,” said Hill in a statement.

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Kelvin Munene Murithi

Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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