Sherrod Brown's Final Warning to Senate Banking Committee Highlights Crypto Concerns

December 11, 2024

Democratic Senator Sherrod Brown delivered his farewell address to the Senate Banking Committee this week, using his final remarks as committee chair to issue a stark warning about cryptocurrency and other emerging financial technologies.

In his December 11 prepared statement for a committee hearing, Brown cautioned lawmakers about what he perceives as potential threats under the incoming Trump administration. The Ohio senator, who has consistently positioned himself as a crypto skeptic throughout his tenure, expressed concern that "corporate special interests" would have "free rein to rip off workers and customers" based on President-elect Trump's nominations.

"He's opening up our government to the highest corporate bidder," Senator Brown stated, referring to Trump. "It will be up to all of you in this room to preserve the Consumer Financial Protection Bureau (CFPB) as the one place where ordinary Americans can go that will fight for them."

Brown specifically highlighted cryptocurrency among several emerging technologies he views as potentially harmful:

"This committee must ready itself for the fights and challenges ahead [...] from algorithmic prices to AI to crypto. All these risks have one thing in common: they all have the potential to take even money away from working Americans… and funnel it to the same corporate elite that always seem to come out ahead."

Political Shift and Crypto Industry Influence

Brown's departure marks a significant leadership change for the committee that oversees financial regulation. The senator lost his reelection bid in November to Republican Bernie Moreno, contributing to the shift of Senate control to Republicans in January 2025.

Notably, political action committee Fairshake, backed by cryptocurrency industry funding, invested over $40 million in advertising during the Ohio Senate race. This substantial financial involvement likely played a role in helping flip the chamber to Republican control, potentially creating a more favorable regulatory environment for digital assets.

Brown has served as the banking committee chair since 2021 and has been one of Congress's most vocal cryptocurrency critics. Massachusetts Senator Elizabeth Warren, another prominent crypto skeptic, announced she would take the position of ranking member on the committee after Republicans assume majority control in January.

SEC Nomination Vote Delay

The committee was expected to vote on December 11 regarding Securities and Exchange Commission (SEC) member Caroline Crenshaw's nomination for another term. The vote would determine whether her nomination would advance to the full Senate while Democrats still hold majority control. However, reports from the CFPB hearing indicated the vote was delayed and had not been addressed at publication time.

Various cryptocurrency advocacy groups have been actively lobbying Senate lawmakers to reject Crenshaw's nomination, which would potentially keep her at the regulatory body until 2029. If confirmed, after current SEC Chair Gary Gensler steps down on January 20, Crenshaw would be one of only two Democratic commissioners at the securities regulator, alongside commissioner Jaime Lizárraga.

The outcome of this nomination could significantly influence the regulatory approach toward digital assets as the SEC continues to play a pivotal role in cryptocurrency oversight and enforcement actions.