In a series of departures announced in a matter of weeks, the agency’s entire top rung is set to turn over as Brian Quintenz, President Trump’s nominee for CFTC chair, prepares to take the reins.
Commissioners Summer Mersinger and Christy Goldsmith Romero both plan to depart by the end of the week, while fellow Commissioner Kristin Johnson has said she will leave “later this year.”
Acting CFTC Chair Caroline Pham has promised to remain at the agency until Quintenz is confirmed, at which time she too will depart. The commission, which typically has five members, has been short one person since former Chair Rostin Behnam stepped down in January.
The relatively low-profile agency is expected to play a key role in regulating the digital asset market alongside the Securities and Exchange Commission (SEC).
The two agencies have occasionally butted heads as they seek to carve out roles in the burgeoning cryptocurrency landscape.
“If everybody is on their way out or a short-timer, it’s tough to stake that claim that you should have oversight or that you should be able to carve out certain pieces of turf for oversight and supervision,” said Ian Katz, a managing partner at Capital Alpha Partners.
“Certainly, in this sort of ongoing competition between the CFTC and the SEC for regulatory turf or oversight turf, it can’t be helpful if nobody’s there,” he continued.
Mersinger kicked off the slew of departures in mid-May, when the Blockchain Association revealed she would be taking over as CEO after the crypto trade group’s longtime leader, Kristin Smith, left.
Just one day later, Pham confirmed she was on her way out as well, after previously hinting she might return to the private sector earlier this month.
“I have announced that I will be returning to the private sector once Brian Quintenz is confirmed as Chairman,” she said. “While I don’t have any specific plans for what’s next for me personally yet, I hope to make some over the next several months.”
The following day, Romero followed suit. Less than a week later, Johnson also announced her departure, although she gave a slightly longer runway than her colleagues.
Romero acknowledged the drawbacks of the CFTC’s dwindling ranks Tuesday, especially if the agency does receive additional authorities over digital assets.
“What happens if the CFTC gets down to one and gets new authority for crypto?” she said at a Brookings Institution event. “It’s going to be really, really hard, right? You’re not going to have the same push and pull.”
Read more in a full report at TheHill.com.
