In a dramatic shift for the U.S. Commodity Futures Trading Commission (CFTC), the agency is set to shrink to just one commissioner next week. As of September 3, 2025, only Acting Chairman Caroline Pham will remain after Democrat Kristin Johnson departs. This unprecedented scenario casts a spotlight on the CFTC’s role in the rapidly evolving cryptocurrency landscape, especially as the agency awaits congressional action to expand its authority over the crypto spot market.
A Lonely Helm
Caroline Pham, a vocal proponent of cryptocurrency innovation, finds herself alone at the commission’s helm—at least for now. Pham, appointed by former President Donald Trump, has been steering the agency through turbulent regulatory waters, advocating for a balanced approach to crypto oversight. Her tenure, however, might be short-lived. Should Trump’s nominee, Brian Quintenz, secure confirmation as the new chairman, Pham has expressed intentions to return to the private sector.
Quintenz, a former policy chief at venture capital powerhouse Andreessen Horowitz (a16z) and a familiar face in crypto circles, has been waiting in the wings. Yet, his confirmation process remains mired in delays, with the Senate poised to address it as they reconvene after the summer recess. The delay has sparked frustration within the crypto industry, which sees Quintenz as a potential ally in the push for clearer regulatory frameworks. This aligns with the CFTC’s ongoing efforts, such as its second ‘Crypto Sprint’ initiative, aimed at advancing the White House’s push for comprehensive crypto regulation.
A Tumultuous Transition
Kristin Johnson’s departure underscores a period of significant transition for the CFTC. In her farewell remarks, Johnson emphasized the need for the agency to uphold financial stability while embracing technological advancements. “In advancing an agenda in the name of growth, it is critical not to dismantle the foundational resilience that supports financial stability and protects the broader economy,” she stated, signaling her hopes that the agency will navigate these uncharted waters with caution.
The CFTC’s shrinking size raises questions about its capacity to effectively regulate derivatives markets—a role it’s historically played with vigor. Moreover, the ongoing absence of a full commission opens the door to potential legal challenges, though no specific laws preclude the agency from operating with a skeleton crew.
Industry Implications
The crypto community is watching closely. Tyler Winklevoss, CEO of the Gemini crypto exchange, has been a vocal critic of Quintenz’s nomination, reflecting a divide within industry circles. Despite this, many stakeholders have rallied behind Quintenz, urging the administration to expedite his confirmation. With the CFTC poised to take on a more significant role in crypto regulation, leadership stability is of paramount importance.
The CFTC’s influence in the U.S. crypto sector is undeniable. It has spearheaded numerous enforcement actions and engaged in critical dialogues about integrating cryptocurrency into global commodities markets. Yet, the potential for a single-person commission—a stark departure from the usual five-member panel—introduces uncertainty. While some argue that streamlined decision-making could be beneficial, others worry about the lack of diverse perspectives in regulatory decisions. This concern echoes discussions from a recent meeting between Kraken and the SEC’s crypto task force, where tokenization and regulatory clarity were key topics.
Looking Ahead
As the CFTC navigates this transitional phase, the broader regulatory landscape for cryptocurrencies remains in flux. The agency, already a key player in crypto oversight, stands at a crossroads, awaiting congressional action to expand its jurisdiction. Meanwhile, the industry’s rapid evolution continues to outpace regulatory frameworks, raising questions about how effectively a downsized commission can respond to emerging challenges.
The implications of this shift extend beyond the CFTC itself. With President Trump’s administration showing little inclination to nominate additional commissioners, the agency’s future direction hangs in the balance. As Quintenz prepares to potentially assume leadership, the crypto world braces for what lies ahead—an era marked by both opportunity and uncertainty. The coming months will be pivotal in shaping the regulatory landscape for digital assets in the United States.
Source
This article is based on: U.S. CFTC, a Top Crypto Watchdog, Is About to Shrink Commission to Only One Member
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
