During a Senate nomination hearing on Tuesday, Brian Quintenz, President Donald Trump’s nominee to lead the Commodity Futures Trading Commission (CFTC), stated unequivocally that the agency would need more funding.
This would be necessary if Congress grants the CFTC expanded authority to regulate the cryptocurrency industry.
“It is precedental that new jurisdiction comes with new resources,” Quintenz said in response to multiple senators’ questions. “So to the extent that new authorities come to the agency… I would anticipate that new resources would likely be needed.”
Quintenz, currently head of global policy at Andreessen Horowitz’s crypto division (a16z crypto), previously served as a CFTC commissioner from 2017 to 2021. If confirmed by the Senate, he would return to the CFTC at a moment of heightened interest in digital asset regulation and amid significant personnel turnover at the agency.
Senate backs expanded resources for CFTC
Lawmakers from both parties generally agreed with Quintenz’s assessment. While a few expressed reservations about President Trump’s approach to regulatory agencies, there was broad consensus that the CFTC would require a larger budget and staff to oversee an expanded crypto mandate effectively.
“It is also essential that the CFTC have the institutional capacity, both in staffing and resources, to fulfill its mandate in the face of these emerging challenges,” said Sen. Amy Klobuchar (D-Minn.) before asking for Quintenz’s take on resourcing.
Quintenz responded that undertaking much of that responsibility would be a challenge. He added that the precedent has been to provide new resources alongside new authorities.
The hearing took place as lawmakers continue to craft legislation that could hand the CFTC a central role in regulating crypto spot markets, currently in regulatory limbo between the Securities and Exchange Commission (SEC) and other federal agencies.
Quintenz set to lead alone as CFTC faces leadership exodus
If confirmed, Quintenz may initially be the only commissioner at the CFTC. In recent weeks, all four remaining commissioners have either stepped down or announced their departures.
Republican Commissioner Summer Mersinger resigned to become CEO of the Blockchain Association, while Acting Chair Caroline Pham has indicated she will exit once Quintenz is confirmed. Democrats Kristin Johnson and Christy Goldsmith Romero departed or scheduled their exits.
This leadership vacuum raises questions about the agency’s near-term capacity to function effectively, let alone take on new responsibilities in the fast-evolving crypto space.
Quintenz, known for his pro-innovation stance during his previous CFTC tenure, has been a vocal advocate for clear regulation in the digital asset space. He has called for clearly defining the responsibilities of federal agencies in the crypto space and offering clear guidance to industry participants.
His return to the CFTC, especially as the commission’s lone commissioner, could influence how the agency thinks about crypto rulemaking if Congress moves ahead with proposals to broaden the agency’s mandate.
Trump’s larger fiscal plan, which includes deep cuts to government spending and essentially an omnibus bill of infrastructure and defense spending, has only complicated negotiations around the budget. While it is unclear if the CFTC will secure the resources it requires, the agency is prepared to step in potentially transformative ways in crypto regulation.
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