President Donald Trump’s decide to be chairman of the U.S. commodities watchdog, Brian Quintenz, fielded crypto questions greater than every other subject at his Senate affirmation listening to on Tuesday, and he assured the lawmakers that the company can stroll a center floor between unhampered innovation and sturdy shopper safeguards.
At the same time as Quintenz awaits the Senate Agriculture Committee’s vote on whether or not to advance his nomination as chairman of the Commodity Futures Buying and selling Fee, Congress is engaged on market construction laws that might elevate that company because the marquee regulator of U.S. crypto exercise. Quintenz, a former CFTC commissioner, isn’t any stranger to that sector, having served as enterprise capital agency a16z’s head of coverage.
“I have always viewed market structure legislation as an opportunity to be both pro-customer protection and pro-innovation at the same time,” he advised the senators weighing his nomination, which finally must be accepted by the general Senate earlier than he can take over the fee. He mentioned the invoice might “provide the clarity to buildings, entrepreneurs, innovators to develop products” whereas additionally making certain the regulated corporations are appropriately defending the customers of these merchandise.
“Congress should create an appropriate market regulatory regime to ensure that this technology’s full promise can be realized, and I am fully prepared to use my experience and expertise to assist in that effort as well in executing any expanded mission should legislation pass into law,” Quintenz mentioned, including that he is keen to work underneath the CFTC’s present powers “to provide clarity of how the agency’s statutory objectives could be successfully leveraged through this technology.”
Quintenz would be a part of a fee that is being deserted by commissioners. By statute, the CFTC has 5 members — with three from the get together in energy — however the members have left or are within the technique of leaving, together with Performing Chairman Caroline Pham, who mentioned she’s leaving when Quintenz begins work. The lone Democrat, Kristen Johnson, mentioned she’ll depart “later this year,” leaving some uncertainty about her timing. So Quintenz might serve reverse a single Democrat earlier than ultimately working alone for a time, leaving potential authorized vulnerability for any unilateral insurance policies.
A number of the Democratic senators famous the Trump administration has been systematically stripping regulatory commissions of their Democratic members — described by Senator Raphael Warnock as “political purges” — and requested Quintenz if he would encourage the White Home to fill each side of the roster.
“The president is the head of the executive, and the president will make his own decisions. Quintenz said. He later added, “I do not inform the president what to do.”
He granted that the agency may need more funding if it’s assigned the monumental new task as the regulator of digital commodities spot markets, which would include transactions of bitcoin
. Quintenz said that new staff would be made more efficient by “a technology-first method” that makes the employees more efficient.
Quintenz also fielded a number of questions on the prediction markets, another area he’s had direct experience with as a board member of Kalshi, which fought a legal battle with the CFTC over the regulation of event contracts. He defended such event contracts as an appropriate “hedging device.”
“I consider the Commodity Trade Act could be very clear in regards to the objective of derivatives markets, the aim of danger administration and worth discovery, and that occasions [contracts] can serve a operate in that mandate,” he mentioned.
Learn Extra: Trump to Faucet Former CFTC Commissioner, a16z Coverage Head Brian Quintenz for CFTC Head
