CFTC’s Pham Reportedly Planning Departure, Agency Could Face Lack of Party Majority

Caroline Pham, who is currently serving as the acting chair of the U.S. Commodity Futures and Trading Commission, has shared that she plans to step down once a permanent successor is appointed. This decision raises important questions about the direction the agency’s policies may take in the future.

Should former Commissioner Brian Quintenz, nominated by President Donald Trump, secure Senate confirmation, Pham’s exit could align with Commissioner Summer Mersinger’s impending departure to lead the Blockchain Association.

If Quintenz steps into the chair role, he will be working primarily with Democrat Kristin Johnson, as the agency will be left with only one other commissioner aside from him.

With a limited staffing situation, Quintenz could hold significant influence over the agency’s direction since nearly all personnel report to him. However, the CFTC may struggle to implement new regulations while Congress debates legislation that could enhance its regulatory capabilities in the cryptocurrency sector. Delays in appointing new nominees could hinder the commission’s ability to address crucial policy matters.

Typically, the CFTC comprises five members—a chair and two from the majority party, along with two from the minority party. If confirmed, Quintenz will replace Democrat Christy Goldsmith Romero, who has signaled her intention to depart from this role.

Kristin Johnson, the only Democrat left on the commission, has not established a notable stance on digital assets, contrasting with the more vocal position taken by the SEC’s Democratic member, Caroline Crenshaw. The potential for collaboration between Johnson and Quintenz remains uncertain in the context of their limited commission.

Mersinger is set to begin her new role as CEO of the Blockchain Association at the start of next month. Board president Marta Belcher praised Mersinger at a recent conference, indicating she is the right person to elevate cryptocurrency policy.

Mersinger expressed bittersweet feelings about leaving the agency, which she has come to cherish over five years, now preparing to advocate for regulations that might eventually impact her former agency’s jurisdiction over the primary U.S. cryptocurrency trading markets.

As the interim leader appointed during Donald Trump’s presidency, Pham has adopted a proactive approach, seeking to reduce the CFTC’s reliance on enforcement actions regarding cryptocurrency matters while also reassessing various policy stances.

Pham did not provide a response to inquiries after business hours on Wednesday.

Before Pham and Mersinger’s arrivals, the CFTC had dwindled to just two commissioners. The previous chair, Rostin Behnam, a Democrat, had served alongside Republican Dawn Stump for a period.

Uncertainties still linger regarding the president’s strategy for potentially filling the three vacant positions at the CFTC if Pham leaves, including one that would need a Democrat. Thus far, the administration has shown a tendency to replace Democratic appointees across various regulatory bodies, including the Federal Trade Commission.