President Joe Biden of the United States is set to make significant changes to the leadership of key financial regulatory bodies, including the Securities and Exchange Commission (SEC), Federal Deposit Insurance Corporation (FDIC), Treasury Department, and Financial Stability Oversight Council.
According to an announcement made on June 13 by the White House, President Biden plans to nominate Christy Goldsmith Romero, currently a member of the Commodity Futures Trading Commission (CFTC), to take over as Chair of the FDIC from Martin Gruenberg. Additionally, he intends to appoint Kristin Johnson, another CFTC Commissioner, as the next Assistant Secretary for Financial Institutions at the Treasury Department, while Caroline Crenshaw is expected to continue serving as an SEC Commissioner.
Romero, who has been a CFTC Commissioner since March 2022, is known for being a strong advocate for cryptocurrency within the regulatory space. It remains unclear whether her nomination for FDIC Chair is due to her expertise in securities and digital asset regulation or to fill the vacancy left by Gruenberg, who announced his resignation in the wake of allegations of a toxic workplace culture involving sexual harassment and discrimination.
Crenshaw’s term at the SEC recently expired on June 5, where she has been serving since 2020. During her tenure, she opposed the approval of spot Bitcoin exchange-traded funds, citing concerns about fraud and market manipulation. This stance positioned her as one of the more cautious voices on crypto matters within the SEC, alongside Chair Gary Gensler.
President Biden also plans to nominate Hawaii Insurance Commissioner Gordon Ito to the Financial Stability Oversight Council, subject to approval by Congress and the Senate.
These potential leadership changes come at a critical time, as the U.S. government grapples with digital asset regulation amidst an election year. President Biden’s approach to cryptocurrency has faced criticism, particularly his veto of a resolution aimed at overturning an SEC rule regarding banks and digital currencies.
In contrast, former President Donald Trump, a likely Republican nominee for the 2024 election, recently held discussions with crypto mining firm executives, signaling a different approach to digital assets. Trump, who became the first sitting or former U.S. President to be convicted of a felony, is awaiting sentencing recommendations from prosecutors on June 13.
The battle between regulatory bodies like the SEC and the crypto industry continues to intensify, with Godzilla vs. Kong-like showdowns expected in the legal arena.