The White House is expected to nominate U.S. Commodity Futures Trading Commission Commissioner Christy Goldsmith Romero as the next Federal Deposit Insurance Corporation (FDIC) chair and Kristin Johnson to a senior Treasury post, media outlets have reported.
Goldsmith Romero, one of the CFTC’s three Democratic commissioners, is expected to have her first hearing on July 8, Reuters said on Thursday. She is the sponsor of a Technology Advisory Committee that includes members from stablecoin issuer Circle, blockchain analytics firm TRM Labs, and Cryptocurrency custody firm Fireblocks. The committee was created to protect U.S. citizens from cyber attacks and ensure the responsible development of digital assets, as Goldsmith Romero stated. She has been vocal about crypto, emphasizing the importance of getting regulations right in Washington.
Goldsmith Romero is set to replace Martin Gruenberg, who is stepping down following a report that highlighted the need for changes to address widespread sexual harassment and misconduct at the FDIC. The report recommended appointing new officials to shift the FDIC’s culture. The FDIC, established by the U.S. Congress, plays a crucial role in maintaining financial system stability. The FDIC’s inspector general previously noted that the body lacked clear guidance for banks regarding crypto, especially after the failure of some crypto banks. The FDIC is expected to provide clearer guidance and support to banks this year and has taken action against various crypto companies for misleading claims about customer protections.
In addition to Goldsmith Romero’s nomination, Kristin Johnson, another Democratic commissioner, is expected to be nominated for the role of Assistant Secretary for Financial Institutions at the Treasury Department. Johnson has commented on the increased CFTC penalties imposed on Binance, attributing them to the regulator’s prior warnings for crypto firms to comply.
The nominations of Goldsmith Romero and Johnson signal potential shifts in regulatory approaches towards cryptocurrency and financial institutions. As these appointments unfold, it will be essential to monitor how these officials navigate the evolving landscape of digital assets and regulatory frameworks. The focus on promoting responsible development and ensuring compliance within the crypto industry reflects broader efforts to enhance consumer protection and maintain financial system integrity.