Regulation
Crypto market uncertain as Maxine Waters appoints Kristin Johnson to key Treasury post
representative Maxine Watersranking member of the Financial Services Committee of the United States House of Representatives, nominated Ms. Kristin Johnson, current Commissioner of the Commodity Futures Trading Commission (CFTC), to serve as Assistant Secretary for Financial Institutions within the department American. of the Treasury.
In a May 2 letter Addressed to President Joe Biden, Rep. Waters cited Johnson’s extensive expertise in financial regulation and his commitment to maintaining the integrity of financial markets during his tenure as CFTC Commissioner.
According to Waters:
“In her role as Commissioner of the CFTC, Commissioner Johnson has prioritized maintaining the integrity of our financial markets. She pushed the Commission to adopt rigorous standards for capital, guarantees and margins.
Additionally, Waters highlighted Johnson’s advocacy for investor protections and his efforts to hold accountable those who undermine consumer protection laws. The lawmaker noted that Johnson’s leadership in regulating artificial intelligence (AI) at the CFTC once again demonstrates his commitment to staying abreast of emerging financial technologies.
She added:
“Commissioner Johnson provided the committee with important information on a wide range of topics, such as access to credit, credit underwriting, fair lending, AI, digital assets, data privacy, cybersecurity and financial stability, as well as appropriate regulation of banks and fintechs. .”
Winning for crypto?
Waters’ nomination of Johnson sparked various reactions from the crypto community.
Some, like Consensys lawyer Bill Hughes, see Johnson’s potential appointment as a significant boon for the crypto industry, citing his open-mindedness and productivity on blockchain issues.
Over the past year, Johnson has made several interventions within the crypto industry and has consistently recommended for a regulatory-driven approach to the emerging industry.
However, other members of the community expressed reservations, suggesting that Johnson’s appointment would not necessarily translate into direct benefits for the crypto industry, citing the example of the SEC chairman. Gary Gensler.
Before taking office in 2021, Gensler’s appointment sparked optimism from many in the community, who anticipated a favorable regulatory environment for the emerging industry.
However, the Gensler-led SEC has taken several enforcement actions against major crypto companies like Coinbase and Binance and has consistently maintained that the sector operates outside the bounds of compliance.