US Senate Approves Treasury Official Amid Ongoing Government Shutdown

A majority of senators in the US voted to affirm Jonathan McKernan as Under Secretary for Domestic Finance at the Treasury Department.

In a Tuesday vote of 51 to 47, the Senate approved McKernan to the Treasury, where he will work under Secretary Scott Bessent. Despite the US government shutdown resulting from lawmakers’ failure to extend funding past Sept. 30, Congress can still function.

Nominated by President Donald Trump in June, McKernan has previously expressed skepticism about debanking policies but did not directly link that practice to digital assets. In a December post on X, he referenced an article by economist Tyler Cowen that questioned the US banking system’s ability to “integrate with crypto.”

As Under Secretary for Domestic Finance, McKernan will support Bessent on matters tied to the US economy. Previous undersecretaries in his role have engaged with issues concerning a US central bank digital currency and the Treasury’s collaboration with the Federal Reserve and FDIC on banking policies.

Related: US Treasury’s Bessent reconsiders: Bitcoin purchases still on the table

Previously, McKernan worked at the FDIC and was initially selected to lead the Consumer Financial Protection Bureau before Trump rescinded his nomination in May.

Government shutdown hinders regulatory and legislative efforts

The US government shutdown reached its eighth day on Wednesday. A Republican-led temporary bill to fund the government was rejected by a vote of 54 to 45 in the Senate, failing to meet the 60-vote requirement to pass.

With Republicans maintaining a narrow majority, they need Democratic support to reopen the government. Democrats are requesting extended healthcare subsidies and a reversal of cuts made in a July funding bill.