Trump Plans to Nominate Brian Quintenz as CFTC Chair: Report

Former U.S. President Donald Trump is reportedly set to nominate Brian Quintenz, the head of policy at Andreessen Horowitz's (a16z) crypto arm, as the next chairman of the Commodity Futures Trading Commission (CFTC).

Bloomberg reported on February 12, 2024, that Trump’s plans to select Quintenz were disclosed in a document sent from the White House to Capitol Hill. If confirmed, Quintenz is expected to advocate for a pro-crypto regulatory stance and position the CFTC as the leading regulatory body for the cryptocurrency industry, potentially surpassing the authority of the Securities and Exchange Commission (SEC).

Quintenz’s CFTC Nomination

Quintenz, who served as a Republican commissioner for the CFTC during Trump’s first administration from 2016 to 2020, has long been a supporter of integrating digital asset derivatives and crypto products into federal regulatory frameworks. His history at the CFTC, particularly during his tenure as commissioner, positions him as a strong ally for the crypto industry.

If appointed, Quintenz is likely to prioritize creating a more favorable regulatory environment for digital assets, especially with regard to derivatives and futures trading. This would align with the broader push from the crypto sector for more clear and consistent regulations.

A History of Criticism Toward the SEC

In recent months, Quintenz has been vocal in his criticism of the SEC, particularly in relation to the regulatory treatment of Ethereum (ETH). In March 2024, Quintenz took aim at the SEC under Chairman Gary Gensler, accusing the agency of inconsistency in its approach to Ether. He pointed to the SEC’s approval of Ether futures exchange-traded funds (ETFs) in October 2023 as evidence that the agency had implicitly recognized ETH’s status as a non-security asset.

“If the SEC had any doubt about the regulatory treatment of ETH,” Quintenz stated, “it wouldn’t have approved the ETF.” He emphasized that if Ether were classified as a security, the CFTC-listed futures contracts for the asset would be illegal.

A16z’s Crypto Influence

A16z, where Quintenz currently serves as the head of policy, is one of the most influential venture capital firms in the crypto space, funding hundreds of blockchain projects and startups. Some of its notable investments include major platforms like Maker (now Sky), Solana, Avalanche, Aptos, EigenLayer, Lido, Nansen, OpenSea, and Coinbase.

In November 2023, a16z expressed optimism about the regulatory changes under the Trump administration, noting that the expected shift could provide greater flexibility for experimentation in the crypto space.

Other Key Nominations

The document also outlined Trump’s other nominations, including Jonathan Gould, a partner at global law firm Jones Day, as the new Comptroller of the Currency. This agency oversees U.S. national banks. Trump has also tapped Jonathan McKernan, who resigned from the Federal Deposit Insurance Corp. in February, as the new permanent head of the Consumer Financial Protection Bureau (CFPB).

Implications for the Crypto Industry

Quintenz’s potential appointment to the CFTC chairmanship marks a significant shift in the regulatory landscape for the crypto industry. His track record suggests that he would push for regulations that provide clearer guidelines and greater opportunities for innovation in digital asset markets. If confirmed, his leadership at the CFTC could result in a more crypto-friendly environment, particularly in terms of derivatives and futures trading.

As the debate over which agency—CFTC or SEC—should regulate cryptocurrency intensifies, Quintenz’s appointment could be pivotal in shaping the future of crypto regulation in the U.S.