Trump finalises key picks for crypto and banking regulators
Donald Trump is putting the finishing touches to his team to shape the future of US financial regulation, and the cryptocurrency industry is paying careful attention.
His newest pick is Jonathan Gould, a lawyer with deep experience in both traditional banking and cryptocurrencies. He’s set to be nominated to run the Office of the Comptroller of the Currency (OCC), the agency that oversees US national banks.
Revealed in a White House nominations document circulating widely, the move comes alongside Trump’s choice of Jonathan McKernan, a Republican member of the Federal Deposit Insurance Corporation (FDIC), to lead the Consumer Financial Protection Bureau (CFPB). With these selections, Trump’s roster of financial regulators is nearly complete.
Who is Jonathan Gould?
Gould’s name might ring a bell for those in the cryptocurrency space. He served as chief legal officer at blockchain firm Bitfury after holding a senior legal role at the OCC during Trump’s first term. At Bitfury, he worked alongside Brian Brooks, who had been Trump’s acting head of the OCC and who made waves by granting the first national bank charter to a cryptocurrency company, Anchorage Digital.
The big question is whether Gould will continue where Brooks left off. Analysts think that’s a real possibility. According to Jaret Seiberg, a policy expert at TD Cowen, Gould may consider reviving the idea of a special national bank charter directed at cryptocurrency firms. That could open doors for banks specialising in digital assets and give traditional banks more room to engage with cryptocurrencies, including stablecoins.
McKernan for CFPB – and what it means
Trump’s pick for the CFPB, McKernan, is a former staffer for ex-Senator Pat Toomey – a known advocate of the regulation of stablecoins. McKernan’s nomination signals that Trump’s approach to consumer protection could favour financial innovation, though it’s unlikely to thrill Democrats, who have long criticised Trump’s attempts to weaken the CFPB.
McKernan would replace Russ Vought, Trump’s budget chief who temporarily stepped in to run the CFPB. Under Vought, Trump’s team faced backlash from Democrats accusing them of gutting the watchdog agency. If confirmed, McKernan is expected to steer the bureau in a more business-friendly direction.
A cryptocurrency-friendly slate – Without the drama
While Trump’s past personnel picks sometimes raised eyebrows, this batch of financial regulators leans to the more conventional – but with a noticeable cryptocurrency tilt. Industry watchers like Ian Katz, a financial regulation analyst, say Gould, McKernan, and others are experienced professionals unlikely to spark major Senate battles.
That’s in line with Trump’s first-term approach to financial regulation: keeping things steady while quietly nudging policies to favour innovation, particularly in cryptocurrencies. Trump’s pick for the Securities and Exchange Commission (SEC), Paul Atkins – a seasoned consultant and former commissioner – is seen as a safe choice, for instance.
CFTC in focus: Quintenz returns
There’s movement at the Commodity Futures Trading Commission (CFTC) too. Trump favours Brian Quintenz to lead the agency. He’s a former commissioner with a pro-cryptocurrency stance, and will likely step in after acting Chair Caroline Pham. She has been working in recent weeks to roll back Biden-era policies on digital assets.
Quintenz wasted no time making his position clear. In a post on Twitter, he said the CFTC is ready to ensure the US leads the world in blockchain innovation.
What happens next?
No appointment made by the president is final and each nominee has to be approved by the Senate – something that can take months and doesn’t always end in success for the executive. As an example, the OCC during Biden’s term had to be led by acting leaders for much of the Biden term.
Nonetheless, Trump’s team has sent a clear message: financial regulators under his administration will be experienced, business-centred, and willing to give cryptocurrency a full seat at the table. Now it is up to the Senate to decide whether the new guard will get the opportunity to make changes.
(Photo by Unsplash)
See also: Trump’s Bitcoin play sparks $10 trillion valuation claims
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