Kristin Johnson to Exit CFTC Next Week

Outgoing US CFTC Commissioner Kristin Johnson said she will leave the regulator on Sept. 3, after saying earlier this year she’d leave the agency before 2026 after completing her term.

Johnson said in a statement on Tuesday that she considered it an “honor and privilege” to work as a financial market regulator and feels “inspired to dig in and do more” while she looks for “new ways to be of service to customers, markets, and our nation.”

She cited her work proposing initiatives for evaluating cyber threats and the integration of artificial intelligence into financial markets as particular high points of her time with the Commodity Futures Trading Commission.

Johnson is the CFTC’s sole Democratic commissioner. She joined in March 2022 after being nominated by former US President Joe Biden.

Her exit will leave the CFTC with a nearly empty panel of commissioners, which could slow its work in regulating the crypto market. Only acting Chair Caroline Pham will remain, who will also leave once Brian Quintenz, President Donald Trump’s pick to lead the regulator, is confirmed.

CFTC should focus on growth, consumer protection

In the future, Johnson said, CFTC staff should receive the support and investments needed to be successful, especially when “such significant changes to markets and market structure are contemplated.”

She also reiterated that crypto must operate within a framework of accountability and oversight, and that the commission can prioritize growth while protecting market stability and customers from fraud.

“Sustainable growth depends on, or better stated, is built upon a regulatory framework that ensures markets remain resilient in the face of volatility, uncertainty, and stress,” she said.

“The goals of growth and market integrity are not mutually exclusive. There is no true conflict between advancing the potential for growth and preserving market stability or integrity.”

Vacancies could slow regulatory work

Along with the Securities and Exchange Commission, the CFTC has handled specific regulatory and enforcement issues related to crypto. Congressional Republicans have also been trying to pass laws giving the CFTC greater oversight over the sector.

The CFTC’s first “crypto sprint” statement on Aug. 1 said it would work closely with the SEC to create a rulemaking process and use “their existing authorities to provide fulsome regulatory clarity.”

One commissioner can still act with the authority to advance rulemakings and oversee all activities under the Commodity Exchange Act. 

Outgoing Commissioner Christy Goldsmith Romero said in May that the exodus of the agency’s top brass was “not a great situation” for crypto regulations because it leaves a less diverse pool of opinions. 

Former CFTC Chair Rostin Behnam resigned on Jan. 20, when the Trump administration took over, while Summer Mersinger and Goldsmith Romero stepped down in May.

Related: US must pass regulations or risk losing crypto race — Wyoming Symposium

Five commissioners are supposed to make up the CFTC, and no more than three can be from the same political party.

Quintenz confirmation still in limbo

Trump’s pick for CFTC chair, Brian Quintenz, remains in limbo after the White House intervened to postpone a Senate vote on his nomination in late July.

Several crypto advocacy groups have called for the confirmation of Quintenz, arguing that a permanent chair was critical for the commodities regulator to fulfill its crypto goals.