United States President Joe Biden will shake up leadership at financial regulators with his most recent picks for the Securities and Exchange Commission (SEC), Federal Deposit Insurance Corporation (FDIC), Treasury Department and Financial Stability Oversight Council.
In a June 13 announcement, the White House said President Biden intended to nominate Christy Goldsmith Romero of the Commodity Futures Trading Commission (CFTC) to replace FDIC Chair Martin Gruenberg. He also plans to have CFTC Commissioner Kristin Johnson become the next Assistant Secretary for Financial Institutions at the Treasury Department and for Caroline Crenshaw to remain a commissioner at the SEC.
Romero has been serving as a CFTC commissioner since March 2022 after being nominated by President Biden and is considered by many to be one of the more pro-crypto voices at the regulatory body. It’s unclear if her nomination to be FDIC chair is more related to her experience in securities and cryptocurrency regulation rather than filling the leadership position left by Gruenberg. In May, the soon-to-be-former FDIC chair pledged to resign after allegations of a workplace culture filled with sexual harassment and discrimination.
Commissioners’ terms expire soon
Crenshaw’s term at the SEC expired on June 5. She has served on the commission since 2020. During her five years at the SEC, she voted against the approval of listing and trading for spot Bitcoin (BTC) exchange-traded funds, claiming the underlying markets were “marred by fraud and manipulation,” and was seen by many to be one of the anti-crypto voices at the commission alongside Chair Gary Gensler.
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Romero’s term at the CFTC expired in April, while Johnson would have been permitted to remain until 2025. President Biden also said he intended to nominate Hawaii Insurance Commissioner Gordon Ito to be a member of the Financial Stability Oversight Council. If presented to Congress, all nominations will be subject to a vote in the Senate.
The potential nominations for leadership at the critical financial regulatory bodies come during an election year in the U.S. when many voters examine how the government addresses digital assets. Some critics have pointed out President Biden’s anti-crypto policies, such as vetoing a resolution to overturn an SEC rule on banks handling digital currencies.
Former President Donald Trump, the prospective Republican nominee in 2024, met with executives representing crypto mining firms on June 12. Trump was the first current or former U.S. President to be convicted of a felony, and on June 13, prosecutors are expected to file their recommendations for his sentencing.
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