Brian Quintenz says CFTC to use tech-first approach in crypto regulations

• At a Senate Committee hearing on Tuesday, CFTC Chair nominee Brian Quintenz suggested a tech-first approach to regulating crypto.
• Quintenz, Trump's pick for CFTC Chair, shared that the crypto market bill will be resourceful in upholding consumer protection.
• He noted that crypto exchanges will likely still fall under FinCEN rules to ensure AML compliance.

Brian Quintenz, President Donald Trump's pick for Chairman of the Commodity Futures Trading Commission (CFTC), stated during a nomination hearing on Tuesday that he would focus on a tech-first approach toward crypto regulations under his administration.

Brian Quintenz probed on crypto market regulation at nomination hearing

During a nomination hearing with members of the Senate Committee on Agriculture, President Trump's CFTC nominee, Brian Quintenz, stated that the CFTC would adopt a tech-forward approach toward cryptocurrency regulations if Congress grants it oversight authority.

He emphasized that the CFTC possesses the technological capability and regulatory experience necessary to oversee the digital asset market effectively.

Senator Ben Luján inquired about his plans to address anti-money laundering (AML) breaches related to cryptocurrency, citing that the Department of Justice (DOJ) has recently stepped back from enforcement. Quintenz said that crypto providers would likely be subject to Financial Crimes Enforcement Network (FinCEN) laws, which currently regulate other financial entities. 

When asked about a crypto market structure bill, Quintenz shared that he views the legislation as a way to combine customer protection with innovation.

"I have always viewed market structure legislation as an opportunity to be both pro-customer protection and pro-innovation at the same time," Quintenz stated.

Quintenz further answered questions on prediction markets, drawing from his experience as a board member at Kalshi. He defended event contracts as legitimate financial instruments, describing them as effective tools for hedging real-world risks.

"I believe the Commodity Exchange Act is very clear about the purpose of derivatives markets, the purpose of risk management and price discovery, and that events can serve a function in that mandate," he said.

Before accepting the presidential nomination to be CFTC Chairman, Quintenz worked as a16z Crypto's Global Head of Policy, where he collaborated with several cryptocurrency startups.

He stated at the hearing that this could be the most exciting time to lead as Chairman of the agency, considering the larger shift toward crypto regulations. Quintenz also previously worked as a CFTC Commissioner from 2017 to 2021 and has been an advocate of innovation.

If approved by the Committee, he will proceed to a full Senate vote before being inaugurated as the new CFTC Chairman by President Trump.