The outgoing commissioner of the US Commodity Futures Trading Commission, Kristin Johnson, has announced her departure from the regulator next week, specifically on Wednesday, September 3. Earlier this year, she had stated her intention to leave the agency before 2026 upon the completion of her term.
In a statement released on Tuesday, Johnson expressed that it has been an “honor and privilege” to work as a financial market regulator and that she feels “inspired to dig in and do more” as she seeks “new ways to serve customers, markets, and our nation.”
She highlighted her contributions in proposing initiatives aimed at evaluating cyber threats and the integration of artificial intelligence into financial markets as notable achievements during her tenure at the CFTC.
Johnson is the sole Democrat commissioner of the CFTC, having joined in March 2022 following her nomination by former US President Joe Biden.
Source: CFTC
Her exit will leave the CFTC with a nearly vacant panel of commissioners, potentially hindering its regulatory activities concerning the crypto market. Acting CFTC Chair Caroline Pham is the only remaining head of the agency, who will also depart once Brian Quintenz, nominated by President Donald Trump to lead the agency, is confirmed.
CFTC should prioritize growth and consumer protection
Looking ahead, Johnson emphasized that CFTC staff must be supported and invested in to succeed, particularly during times when “significant changes to markets and market structure are considered.”
She further asserted that the crypto sector should operate under a framework of accountability and oversight, noting that the commission can balance growth with the necessity of protecting market stability and consumers from fraud.
“Sustainable growth relies on, or more accurately, is rooted in a regulatory framework that guarantees markets remain resilient amid volatility, uncertainty, and stress,” she remarked.
“The goals of growth and market integrity are not mutually exclusive. There is no genuine conflict between fostering growth and maintaining market stability or integrity.”
Vacancies may impede regulatory efforts
The CFTC, in conjunction with the Securities and Exchange Commission, has been addressing specific regulatory and enforcement challenges related to cryptocurrency. Congressional Republicans are also striving to pass legislation granting the CFTC expanded oversight over the sector.
The CFTC’s first “crypto sprint” announcement on August 1 indicated that the agency would collaborate closely with the SEC to develop a rulemaking process and utilize “their existing authorities to provide comprehensive regulatory clarity.”
One commissioner can still exercise authority to advance rulemaking and oversee all Commission activities under the Commodity Exchange Act.
With Kristin Johnson’s official departure, Caroline Pham remains the only confirmed member of the commission. Source: CFTC
However, outgoing commissioner Christy Goldsmith Romero remarked in May that the departure of the agency’s leadership is “not a favorable situation” for cryptocurrency regulations due to the diminished diversity of opinions.
Former CFTC Chair Rostin Behnam resigned on January 20 following the transition to the Trump administration, while Summer Mersinger and Christy Goldsmith Romero also stepped down in May.
Related: US must implement regulations or risk falling behind in the crypto race — Wyoming Symposium
The CFTC is intended to consist of five commissioners, with no more than three hailing from the same political party.
Quintenz confirmation remains uncertain
Brian Quintenz, Trump’s nominee for CFTC chair, is still awaiting confirmation as the White House intervened to delay a Senate vote on his nomination late in July.
Several advocates for cryptocurrency have called for Quintenz’s confirmation, asserting that a permanent chair is crucial for the commodities regulator to achieve its objectives in the crypto sector.
An August report also indicated that Gemini co-founders Cameron and Tyler Winklevoss urged Trump to reconsider Quintenz’s nomination, arguing that he would not fully implement the president’s crypto agenda as CFTC chair.
Quintenz served as a commissioner at the CFTC under Trump from 2017 to 2021, after his nomination by former US President Obama in 2016.
Magazine: Bitcoin is ‘funny internet money’ during a crisis: Tezos co-founder
