CFTC Nominee Quintenz Avoids Commitment to Bipartisan Balance

Brian Quintenz, the nominee for the chair of the Commodity Futures Trading Commission (CFTC) by US President Donald Trump, declined to commit to advocating for a bipartisan balance at the agency during his Senate nomination hearing on Tuesday. When questioned by Senators Tina Smith of Minnesota and Raphael Warnock of Georgia about whether he would recommend to Trump that the CFTC maintain an equal number of Democratic and Republican commissioners, Quintenz evaded a direct response, instead highlighting his experience.

The law stipulates that no more than three CFTC commissioners can belong to the same political party. As of Tuesday, only two commissioners, acting chair Caroline Pham and Kristin Johnson, were serving at the agency. Both are expected to depart if Quintenz is confirmed and potentially later in 2025. Smith expressed disappointment with Quintenz’s non-committal answer.

Quintenz’s nomination hearing covered various topics, including his potential policy stance on crypto if confirmed. He addressed regulatory issues, prediction markets, and his experiences dealing with debanking while at the venture capital firm Andreessen Horowitz. Quintenz shared an anecdote about his firm’s struggles to invest in small crypto teams due to their inability to open bank accounts, highlighting the challenges faced by the crypto industry.

Quintenz also discussed the potential impact of the CLARITY Act, a bill being considered in the House of Representatives that could grant the CFTC more authority over digital assets. He acknowledged that the evolving nature of crypto assets and blockchain technology presents new regulatory challenges. Quintenz expressed confidence in the CFTC’s ability to regulate spot digital commodity markets if given the mandate, provided there is clarity in the legislation.

Quintenz’s prepared testimony echoed his remarks during the hearing. He disclosed positions in cryptocurrency and market firms, which could create conflicts of interest if confirmed. He pledged to resign from all positions and divest from certain assets within 90 days of his confirmation. The makeup of the CFTC, as one of two significant US financial regulators, could play a major role in overseeing digital assets as Congress considers legislation to establish a digital asset market structure framework.