According to a May 9 Bloomberg report, the White House is expected to nominate Kristin Johnson, commissioner of the Commodity Futures Trading Commission (CFTC), for a key position at the US Treasury Department overseeing banks.
According to the report, Commissioner Johnson is approved for the position of Assistant Secretary of the Treasury for Financial Institutions, and the announcement is expected to be made public soon.
CFTC commissioner’s cooperation with US SEC
If approved, Johnson will direct financial policy on cooperative credit unions, insurance and consumer protection. He will work closely with the Treasury Secretary and coordinate with federal regulators and banking agencies.
The post of Assistant Secretary of the Treasury for Financial Institutions has been vacant since the departure of Graham Steele in January 2024. So far, news of Johnson’s potential crossover has raised concerns about conflicts of interest in the decision-making process.
Congressman Don Meuser expressed his disagreement with the change in a May 10 X post. He argued that the imminent change of commissioner raises concerns about the official’s conflicting loyalties and interests, which he said could threaten the CFTC’s impartiality as an independent agency.
Despite Meuser’s concerns, financial experts and observers are optimistic about Johnson’s confirmation, citing recent support from influential figures such as Maxine Waters.
In a letter to President Biden on May 2, Waters highlighted Johnson’s notable accomplishments and experience, endorsing her for the role.
“In her role as CFTC Commissioner, Commissioner Johnson has made it a priority to maintain the integrity of our financial markets,” – Congresswoman Waters stated. “She has pressed the Commission to adopt rigorous standards for capital, collateral and margin. Commissioner Johnson is also leading the CFTC’s work on artificial intelligence (AI) and encouraging the Commission to carefully evaluate whether existing regulations are adequate for their intended purposes or whether new regulations are needed.”
Waters, who recently expressed concerns about the Met‘s cryptocurrency ventures, welcomes Johnson’s appointment. She believes her status as a “person of color” will ensure that the leadership of the US Treasury Department reflects diversity.
Johnson’s tenure as CFTC commissioner was characterized by her proactive stance, which garnered a lot of attention and recognition. Last year, she made a series of proposals to improve the CFTC’s oversight of crypto companies.
Specifically, her plan includes empowering the regulator to control companies seeking to acquire a 10% or greater stake in a CFTC-regulated exchange or clearing house. Recently, Johnson praised the Binance settlement, which she described as a template for how crypto companies should operate in the US.
