President-elect Donald Trump is reportedly considering appointing prominent figures with pro-crypto stances to lead the Commodity Futures Trading Commission (CFTC), an agency poised to play a pivotal role for the digital assets industry. This move aligns with Trump’s campaign promises to transform the United States into the “crypto capital of the planet” and a “Bitcoin superpower.”
During the presidential campaign, Trump criticized the Biden administration for “hamstringing” the Bitcoin and crypto sector, particularly through actions taken by the Securities and Exchange Commission (SEC). His administration is expected to adopt a pro-crypto stance towards crypto, with the CFTC potentially taking a more prominent role in oversight and regulation.
Who Will Lead The Pro-Crypto CFTC?
One of the frontrunners for the CFTC chair position is supposedly Perianne Boring, the founder and CEO of the Chamber of Digital Commerce, the world’s largest blockchain trade association. A source familiar with the selection process told Fox Business that her expertise “would help boost her candidacy for the role.”
Boring began her career as a legislative analyst in the US House of Representatives, focusing on finance, economics, tax, and healthcare policy. Her familiarity with Congress is seen as a significant asset in crafting legislation to guide the CFTC’s regulatory mission. Additionally, her prior experience as a television anchor discussing international financial topics showcases her ability to effectively communicate complex financial issues to the public.
Recently, Boring has been a staunch defender of the Bitcoin mining industry against what she terms “regulatory overreach.” In a recent op-ed, she criticized the Department of Energy’s data collection efforts, accusing the agency of “singling out Bitcoin miners under the guise of ’emergency’ measures.” She has also accused the SEC of engaging in “backdoor rulemaking” by attempting to classify various cryptocurrencies as securities.
Another top contender is Caroline Pham, a current CFTC commissioner appointed by the Republican Party and leader of the Commission’s Global Markets Advisory Committee. Pham brings over two decades of experience advising regulators, industry leaders, and policymakers on financial regulation issues.
In 2023, Pham proposed a “time-limited” pilot program to regulate digital asset markets and tokenization, aiming to establish a principles-based framework that fosters innovation while managing risks. She has emphasized the need for international regulatory cooperation and has suggested that the SEC and CFTC engage in joint roundtables to enhance regulatory clarity.
As a sitting commissioner, Pham could serve as acting chair pending Senate confirmation. Her unanimous confirmation by the Senate in 2022 underscores her bipartisan appeal.
Summer Mersinger, also a current CFTC commissioner, is also being considered for the chair position. Nominated by President Biden and confirmed by a voice vote in the Senate, Mersinger previously worked for Senator John Thune (R-S.D.), who is set to become the Senate Majority Leader in the new Congress.
Mersinger has actively defended crypto firms facing enforcement actions and has called for the CFTC to establish clear regulatory guidelines for the industry. She stated that “developing rules of the road” is essential for fostering innovation while ensuring market integrity. Like Pham, Mersinger could assume the role of acting chair, facilitating a smooth transition in leadership.
Former CFTC Commissioner Jill Sommers is another potential candidate. Serving from 2007 to 2013, Sommers has held significant roles, including Managing Director for Regulatory Affairs at the Chicago Mercantile Exchange and Head of Government Affairs for the International Swaps and Derivatives Association. Currently, she is the Chief of the Derivatives Practice Group at Patomak Global Partners.
Neal Kumar, formerly a Special Counsel in the CFTC’s General Counsel’s Office, is also in the running. At the CFTC, he provided advice on new rules under the Dodd-Frank Act and handled enforcement matters. Currently, he is the Co-Head of the Commodities and Derivatives Practice at Willkie Farr & Gallagher LLP, where he works on regulatory, enforcement, legislative, and transactional issues, including those related to digital assets.
At press time, Bitcoin traded at $96,143.
* The content presented above, whether from a third party or not, is considered as general advice only. This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.
