This week three CFTC Commissioners announced their imminent departures from the Commission including Caroline Pham, the current Acting Chair.
What is it about?
- In a reshaping of the Commission, two Republican-aligned and one Democrat-aligned announced their intention to step down from their respective positions as Commissioners. Acting Chair Caroline D. Pham announced her departure in this speech at the ISDA Annual General Meeting in Amsterdam this week. The outspoken Acting Chair confirmed that she intends to return to the private sector once Brian Quintenz is confirmed as CFTC Chairman. Acting Chair Pham is noted for her sharp criticism of certain practices of the CFTC and, in her roughly 100 days as Acting Chair, and prior to that, as Commissioner, she has certainly left her mark by laying the foundations for further internal reform;
- The second announcement came from Commissioner Summer K. Mersinger, a Republican appointee, via this announcement. Commissioner Mersinger will step down at the end of May to pursue “new opportunities” which some outlets are reporting is to head the Blockchain Association (click here), the industry association for the US crypto industry. The announcement comes despite the Commissioner having been unanimously confirmed by the US Senate for a second term which would have ended in April 2028 had the Commissioner opted to stay. Commissioner Mersinger was first appointed back in March 2022;
- The third announcement came from Commissioner Christy Goldsmith Romero, a Democrat appointee, via this announcement. Commissioner Goldsmith Romero was sworn-in as Commissioner in March 2022 and plans to step down at the end of May. She discussed her departure at the ISDA AGM this week in this short interview where she also discusses her future plans. The Commissioner was the sponsor of the CFTC’s Technology Advisory Committee (TAC) which took a lead focus on emerging technologies like artificial intelligence as well as on cybersecurity, digital assets, and FinTech. These quick-fire departures and the slowness with which the new administration is naming new appointments leaves questions about the future direction of the CFTC unanswered.
So who remains? The Commission is typically comprised of five Commissioners. Commissioner Kristin Johnson, a Democrat appointee, will be the only remaining CFTC commissioner after the three Commissioners above depart, although the arrival of Brian Quintenz as the new Chairman will make it a Commission of two, one Republican and one Democrat appointee. This is of course assuming that Commissioner Johnson does not choose to follow the other Commissioners by stepping down in the short term. While none of the exits have been reported as controversial, the clustered timing does indicate that a major change in tack for the CFTC is on the horizon.
