The Trump Administration is reviewing potential additional candidates to chair the Commodity Futures Trading Commission (CFTC) as it prepares for a leadership shift at the financial regulator. Kalshi lawyer Josh Sterling is currently being vetted for the position after Brian Quintenz’s nomination hit pause, according to Semafor.
Key Takeaways
- The White House is assessing potential candidates for the CFTC chairmanship.
- Former chair Rostin Behnam has been a key figure in crypto and derivatives oversight since taking office in 2021.
- The next CFTC chair will face pressure to address prediction markets, digital assets, and consumer protection issues.
Chairman Rostin Behnam stepped down from his position in January and will leave the commission in February.
Behnam has been running the agency since 2021 and has been central in guiding contentious policy debates over digital assets and derivatives markets. His tenure in office has covered efforts to extend oversight to the crypto space over the broader mandate of the agency to regulate swaps and futures.
Commissioner's exit highlights prediction market tensions
While the White House weighs its options, the CFTC is already undergoing a transition. Commissioner Kristin Johnson departed earlier this month, ending her three-year term with a strong message on the challenges facing the agency. Johnson also warned specifically about the explosive expansion of prediction markets, urging regulators not to rush in balancing innovation versus investor protections.
Her resignation leaves the CFTC with only three commissioners. Johnson had been among the voices advocating measured regulation of digital goods and trading assets, citing risks from platforms that make dividing lines between regulated financial instruments and entertainment.
She noted possible election-related contract abuses and difficulties in achieving proper consumer protections. The commissioner's concluding remarks are indicative of broader policy deliberations that will pass to her successor and future chair.
