Kristin Johnson to Depart from CFTC Next Week

Outgoing US Commodity Futures Trading Commission commissioner Kristin Johnson has announced her departure from the regulator, effective Wednesday, Sept. 3. Earlier this year, she had indicated her intention to leave the agency before 2026, after fulfilling her term.

In a statement on Tuesday, Johnson expressed that it has been an “honor and privilege” to serve as a financial market regulator and feels “inspired to dig in and do more” as she seeks “new ways to be of service to customers, markets, and our nation.”

She highlighted her initiatives on evaluating cyber threats and the use of artificial intelligence in financial markets as significant achievements during her time at the CFTC.

Johnson is the CFTC’s only Democratic commissioner, having joined in March 2022 after being nominated by former US President Joe Biden.

Her departure will leave the CFTC with a nearly vacant panel of commissioners, which may hinder its ability to regulate the crypto market effectively. Acting CFTC Chair Caroline Pham will lead the agency, but she too will depart once Brian Quintenz, President Donald Trump’s nominee for the chair, is confirmed.

CFTC should prioritize growth and consumer protection

Looking ahead, Johnson emphasized the need for CFTC staff to receive the necessary support and investments to succeed, particularly as “significant changes to markets and market structure are proposed.”

She reiterated the importance of ensuring that crypto operates within an accountable framework, suggesting that the commission can focus on growth while maintaining market stability and protecting consumers from fraud.

“Sustainable growth is dependent on, or more accurately, is built upon a regulatory framework that guarantees market resilience amidst volatility, uncertainty, and stress,” she stated.

“The goals of growth and market integrity are not mutually exclusive. There is no true conflict between promoting growth and preserving market stability or integrity.”

Vacancies may impede regulatory progress

Together with the Securities and Exchange Commission, the CFTC has been addressing specific regulatory and enforcement matters concerning crypto. Congressional Republicans have also sought to legislate increased oversight for the CFTC in this sector.

The CFTC’s initial “crypto sprint” statement on Aug. 1 indicated it would collaborate with the SEC to establish a rulemaking process and utilize “existing authorities to provide comprehensive regulatory clarity.”

Even with just one commissioner, there remains the ability to advance rulemakings and oversee all Commission activities under the Commodity Exchange Act.

Outgoing commissioner Christy Goldsmith Romero remarked in May that the departure of high-ranking officials is “not a great situation” for crypto regulations due to a diminished diversity of opinions.

Former CFTC Chair Rostin Behnam resigned on Jan. 20, following the transition to the Trump administration, while Summer Mersinger and Christy Goldsmith Romero left in May.

Related: US must enact regulations or risk falling behind in the crypto race — Wyoming Symposium

Typically, five commissioners make up the CFTC, with no more than three allowed from the same political party.

Quintenz confirmation remains uncertain

Trump’s nominee for CFTC chair — Brian Quintenz — is still in limbo following the White House’s intervention to delay a Senate vote on his nomination in late July.

Various crypto advocacy groups have urged for Quintenz’s confirmation, contending that a permanent chair is essential for the commodities regulator to achieve its crypto objectives.