The Securities and Exchange Commission announced Friday that Caroline Crenshaw, the agency's only Democratic commissioner, has left the agency.
Crenshaw was sworn in on Aug. 17, 2020, and her term expired in 2024. However, SEC commissioners can stay on 18 months after their term expires.
"Crenshaw has devoted more than a decade of distinguished service to the Securities and Exchange Commission," SEC Chairman Paul Atkins said Friday in a statement, along with the agency's two other Republican commissioners, Hester Peirce and Mark Uyeda. "Over those years, she has been a steadfast advocate for the agency’s mission — demonstrating clarity of purpose and generosity of spirit. Commissioner Crenshaw has listened carefully, engaged substantively, and approached every day with the purpose of safeguarding investors and strengthening our markets."
Before joining the SEC, Crenshaw served as a major in the U.S. Army Reserve JAG Corps.
With Crenshaw's departure, the agency now has three commissioners — all Republicans.
"On paper, that still works. Three Commissioners is a quorum," Peter Lallas, a former federal prosecutor and senior trial counsel at the SEC, said in a LinkedIn post. "In practice, though, it puts the agency on a very narrow ledge."
No more than three SEC commissioners can belong to the same political party.
The Trump administration will likely nominate a replacement "in the first half of this year with an independent or possibly even a Libertarian," Nicolas Morgan, president of the Investors Choice Advocates Network and a former SEC trial counsel, added Friday in an email.
"With only three Commissioners, there’s no room for error," Lallas said. "All three have to be available for the Commission to act. One recusal, a conflict, or even someone out sick can bring things to a halt."
Enforcement decisions "also become harder to manage," Lallas added. "A 2–1 vote is enough, but staff will have to be careful about when matters are scheduled to make sure all three Commissioners are present and able to vote. Inevitably, things will slow down."
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