President Joe Biden of the United States is set to make significant changes in the leadership of financial regulators, including the Securities and Exchange Commission (SEC), Federal Deposit Insurance Corporation (FDIC), Treasury Department, and Financial Stability Oversight Council.
In a recent announcement on June 13, the White House revealed President Biden’s plans to nominate Christy Goldsmith Romero from the Commodity Futures Trading Commission (CFTC) to take over as FDIC Chair from Martin Gruenberg. Additionally, CFTC Commissioner Kristin Johnson is expected to become the next Assistant Secretary for Financial Institutions at the Treasury Department, while Caroline Crenshaw will continue her role as a commissioner at the SEC.
Romero, who has been a CFTC commissioner since March 2022, is known for being a strong advocate for cryptocurrencies within the regulatory framework. Her nomination for the FDIC chair position raises questions about her expertise in securities and cryptocurrency regulation, especially in light of Gruenberg’s departure following allegations of workplace misconduct.
The terms of both Romero and Johnson at the CFTC are set to expire soon, with President Biden also planning to nominate Gordon Ito, the Hawaii Insurance Commissioner, to join the Financial Stability Oversight Council. These nominations will need to be approved by Congress and face a vote in the Senate.
The selection of new leadership for key financial regulatory bodies comes at a crucial time in the U.S. as digital assets continue to be a focal point for many voters. President Biden’s stance on cryptocurrencies has been a subject of criticism, particularly his opposition to a resolution that aimed to challenge an SEC rule on banks handling digital currencies.
Meanwhile, former President Donald Trump, a potential Republican candidate for the 2024 election, recently engaged with executives from crypto mining companies. Trump’s meeting occurred amidst legal proceedings against him, with prosecutors expected to submit their sentencing recommendations following his conviction on felony charges. The battle between regulators and the crypto industry continues, reminiscent of a showdown between Godzilla and Kong.