Biden Plans Major Leadership Revamp in Key Financial Regulatory Bodies
Summary:
President Joe Biden is set to revamp US financial regulators with new nominations for the Securities and Exchange Commission (SEC), Federal Deposit Insurance Corporation (FDIC), Treasury Department and Financial Stability Oversight Council. Plans include nominating Christy Goldsmith Romero to replace FDIC Chair Martin Gruenberg and nominating Kristin Johnson as Assistant Secretary for Financial Institutions at the Treasury Department, while Caroline Crenshaw is expected to continue her position at the SEC. The shake-up, occurring during an election year, comes in the backdrop of ongoing debates around government handling of digital assets and cryptocurrencies.
President Joe Biden is set to reorganize the leadership of financial regulatory bodies in the US, selecting new representatives for the Securities and Exchange Commission (SEC), Federal Deposit Insurance Corporation (FDIC), the Treasury Department, and the Financial Stability Oversight Council. In an announcement dated June 13, the White House shared Biden's intentions to propose the appointment of Christy Goldsmith Romero from the Commodity Futures Trading Commission (CFTC) as a replacement for the outgoing FDIC Chair, Martin Gruenberg. The President also plans to appoint CFTC Commissioner Kristin Johnson as Assistant Secretary for Financial Institutions in the Treasury Department, while encouraging the continued involvement of Caroline Crenshaw as a commissioner with the SEC.
Romero, who has been a CFTC commissioner since March 2022 following her nomination by Biden, is widely seen as a pro-crypto voice within the regulatory agency. It remains to be seen whether her proposed shift to the FDIC chair is related to her expertise in securities and cryptocurrency regulation, or if she is intended to fill the leadership void left by Gruenberg. The outgoing FDIC chair announced his intention to step down in May, following accusations of fostering a workplace environment that condones discrimination and sexual harassment.
The terms of commissioners are due to end soon, with Crenshaw’s SEC term having concluded on June 5. She has contributed to the commission since 2020 and during her five-year tenure, she opposed the listing and trading of spot Bitcoin (BTC) exchange-traded funds, arguing that the underlying markets are riddled with fraud and manipulation. She is perceived by many as an anti-crypto voice within the commission, a view she shares with Chair Gary Gensler.
Romero's CFTC term ended in April, though Johnson was eligible to serve till 2025. Biden has also expressed his intention to nominate Gordon Ito, the Hawaii Insurance Commissioner, to the Financial Stability Oversight Council. All nominee appointments will have to undergo Senate approval after being submitted to Congress.
This reshuffle of leadership at key financial regulatory bodies takes place in an election year, where the government's approach towards digital assets is often a focal point for voters. Some have criticized Biden for his alleged skepticism towards cryptocurrencies, as highlighted by his veto of a proposal to overturn an SEC rule regarding banks' handling of digital currencies.
On June 12, former President Donald Trump, who may run for the presidency in 2024, engaged in discussions with representatives from crypto mining companies. Trump, who has been found guilty of a felony, is expected to face prosecutors' sentencing recommendations on June 13.
Published At
6/13/2024 9:25:46 PM
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