Trump's CFTC Overhaul: Pro-Innovation Rules to Counter Biden Crackdown

The Trump transition team is evaluating potential candidates for chair of the Commodity Futures Trading Commission (CFTC), with a focus on ending the Biden administration’s regulatory crackdown on the cryptocurrency industry and promoting digital asset adoption. Current and former CFTC officials, including Jill Sommers, Summer Mersinger, and Josh Sterling, are among the leading contenders, according to sources familiar with the discussions. The decision is expected to follow the announcement of the Treasury secretary, with the transition team prioritizing financial agency nominations after finalizing key economic appointments.

The CFTC, which regulates derivatives markets and has traditionally played a secondary role in financial policy, is anticipated to take on greater importance under the Trump administration. This shift stems from the crypto industry’s push for regulatory clarity and the transition team’s pledge to overhaul existing policies. The Biden-era regulators have pursued enforcement actions against crypto firms, alleging violations of securities and anti-money laundering laws. In contrast, the Trump administration aims to establish a framework that supports digital asset innovation.

Among the candidates, Summer Mersinger is viewed as the frontrunner. As a Republican CFTC commissioner, she has advocated for the agency to draft rules for the crypto sector and previously served as a top aide to Senate Republican leader John Thune, a key figure in shaping financial legislation. Jill Sommers, a former CFTC commissioner and current partner at Washington-based consultancy Patomak Global Partners, is also in the running. Her experience includes defending crypto firms against enforcement actions, aligning with the industry’s desire for a more accommodating regulatory environment.

Josh Sterling, a partner at Milbank and former CFTC official, is another prominent name under consideration. Sterling currently represents prediction market platform Kalshi and has been involved in shaping derivatives market policies. The transition team is also reportedly reviewing other candidates, including Securities and Exchange Commission (SEC) official Mike Selig and Treasury Department official Tyler Williams.

The current CFTC leadership includes five commissioners, with a partisan split of three Democrats and two Republicans. Caroline Pham, the other Republican commissioner, is also a potential contender, having proposed initiatives to support digital asset development. The agency’s chair is appointed by the President and confirmed by the Senate, with no more than three commissioners allowed from the same political party at any time.

The transition team’s deliberations come after the Trump administration requested a pause in the nomination of Brian Quintenz, a former CFTC commissioner, due to pushback from the crypto and gambling industries. Quintenz, who had the backing of influential venture capitalist Marc Andreessen, faced criticism from crypto executives including Tyler and Cameron Winklevoss. Despite these efforts, the nomination process stalled, prompting the search for new candidates.

The CFTC’s role in crypto regulation is expected to expand as the Trump administration seeks to position the U.S. as a global leader in digital assets. The agency’s upcoming priorities will likely include balancing market oversight with fostering innovation, reflecting the industry’s demand for clear and predictable rules. With the transition team emphasizing deregulation and pro-growth policies, the choice of CFTC chair will signal the administration’s approach to managing the evolving crypto landscape.