President Joe Biden of the United States is set to make significant changes to the leadership of key financial regulatory bodies with his latest nominations for positions at the Securities and Exchange Commission (SEC), Federal Deposit Insurance Corporation (FDIC), Treasury Department, and Financial Stability Oversight Council.
In a statement released on June 13, the White House announced that Christy Goldsmith Romero, currently serving at the Commodity Futures Trading Commission (CFTC), is being nominated to replace Martin Gruenberg as the Chair of the FDIC. Additionally, Kristin Johnson from the CFTC is expected to take on the role of Assistant Secretary for Financial Institutions at the Treasury Department, and Caroline Crenshaw will continue her position as a commissioner at the SEC.
Romero, who has been a CFTC commissioner since March 2022, is known for being a strong advocate for cryptocurrency within the regulatory body. It remains unclear whether her nomination for FDIC chair is more based on her expertise in securities and crypto regulation or to fill the void left by Gruenberg, who announced his resignation amid allegations of a toxic workplace environment.
Crenshaw’s term at the SEC recently ended on June 5, having served since 2020. Throughout her tenure, she opposed the approval of spot Bitcoin exchange-traded funds, citing concerns of fraud and manipulation in the underlying markets. She was often viewed as a key figure against cryptocurrencies at the SEC, alongside Chair Gary Gensler.
Romero’s term at the CFTC expired in April, while Johnson had the option to stay until 2025. President Biden also intends to nominate Gordon Ito, the Hawaii Insurance Commissioner, to join the Financial Stability Oversight Council. Should these nominations be presented to Congress, they will be subject to Senate approval.
These potential leadership changes in crucial financial regulatory agencies come at a time when digital assets are under increased scrutiny in the U.S. during an election year. Some critics have raised concerns about President Biden’s stance on cryptocurrencies, including his decision to block the overturning of an SEC rule related to banks handling digital currencies.
Meanwhile, former President Donald Trump, a likely Republican candidate in 2024, recently met with executives from crypto mining companies. Trump, who became the first U.S. President to be convicted of a felony, is awaiting sentencing recommendations from prosecutors on June 13.
In another realm, the SEC is gearing up for a challenging battle against the legal firepower of the crypto industry in the ongoing saga of Godzilla vs. Kong.