CFTC Commissioner Kristen Johnson is leaving her post, potentially leaving Chairman Brian Quintenz without a full slate of support.
CFTC Commissioner Kristen Johnson to Leave Post, Leaving Empty Chair for Incoming Chairman
The last of the sitting commissioners at the Commodity Futures Trading Commission (CFTC) is leaving her post along with all of her colleagues, potentially leaving President Donald Trump‘s appointed chairman, Brian Quintenz, without a full slate of support.
The Staffing Problem at the Top
The CFTC has been facing a staffing problem at the top, with the last of its sitting commissioners announcing her departure plans before the arrival of the agency’s chairman. This leaves the potential for legal challenges if the commission sets policy with a single commissioner.
Democratic Commissioner Kristen Johnson has opted to leave ‘later this year,’ becoming the fourth of four current commissioners to reveal exit plans. Her departure, combined with that of Christy Goldsmith Romero, who is planning to leave by the end of this month, leaves Trump’s choice to lead the agency — Quintenz — potentially running an empty commission.
The Implications for Crypto Regulation
The CFTC has been seen as a potential primary watchdog for the U.S. crypto industry under legislation being considered in Congress to establish a domestic oversight regime. With Johnson and Romero leaving, there may be confusion or legal uncertainty atop the agency, which could be problematic.
Crypto regulation has become a pressing issue as cryptocurrencies gain mainstream acceptance.
In 2013, the US Treasury Department issued guidelines for virtual currency transactions under the Bank Secrecy Act.
The Financial Crimes Enforcement Network (FinCEN) requires crypto businesses to register and report suspicious activities.
The European Union's Anti-Money Laundering Directive (AMLD5) applies to crypto exchanges and wallet providers since 2020.
Regulatory frameworks are being developed in countries like Japan, South Korea, and Singapore.
Johnson had taken a three-year leave from Emory University School of Law to correspond with the time left in the term she stepped into and concentrated much of her farewell statement on artificial-intelligence work. However, she also referenced crypto and encouraged the commission to begin a multi-stakeholder dialogue on digital asset markets.
The Transition
Quintenz is taking over the spot currently occupied by Romero and will likely be confirmed by the Senate soon. Since Johnson said she’d leave ‘later this year,’ she may serve opposite Quintenz for some period of time in a one-to-one Republican-Democratic faceoff, potentially leaving the agency without a full complement of commissioners.
Summer Mersinger has taken over the Blockchain Association, a crypto lobbying group, and Acting Chair Caroline Pham is intending to head back to an unspecified role in the private sector once Quintenz takes over.
