President Trump Nominates Key Figures for Financial Regulation Posts
President Donald Trump is close to naming key figures to lead the future oversight of the crypto industry, including lawyer Jonathan Gould as a nominee to run the Office of the Comptroller of the Currency (OCC) that oversees U.S. national banks.
A widely circulated White House nominations document shows Trump has settled on Gould, a partner at the law firm Jones Day who previously worked as a top lawyer at the OCC and a former crypto executive. This move comes as the president is also set to nominate Federal Deposit Insurance Corp. (FDIC) official Jonathan McKernan to run the Consumer Financial Protection Bureau (CFPB).
Gould’s background
Gould had briefly worked as the chief legal officer for blockchain technology company Bitfury after leaving the OCC as senior deputy comptroller and chief counsel during the first Trump administration. At Bitfury, he worked under CEO Brian Brooks, who Trump had once installed at the OCC as an acting comptroller and also tried to make permanent. At the OCC, Brooks worked to open U.S. banking for crypto firms, and he elevated Anchorage Digital as the first and only crypto bank chartered by the agency.
Industry Impact
"For crypto, we believe Gould could seek to revive the concept of a limited-purpose national bank charter," said Jaret Seiberg, a policy analyst at TD Cowen, in a note to clients on Wednesday. "That could lead to banks that specialize in crypto. We also believe he would permit banks to get more involved with crypto, including stablecoins."
Other Nominations
The Trump administration has also nominated several other figures for financial regulatory roles, including:
- Rodney Hood, a former Republican chief of the National Credit Union Association, as a temporary comptroller to replace him at the OCC.
- Jonathan McKernan, a Republican member of the FDIC, to run the CFPB.
Reaction
Ian Katz, a veteran financial-regulation analyst in Washington, noted that the "conventional" picks for the OCC and other recent choices for permanent chiefs of the Commodity Futures Trading Commission (CFTC) and the CFPB "won’t ruffle feathers among U.S. senators who will evaluate their nominations." The relatively sedate choices seem to hew closely to Trump’s model for financial regulators during his first term: no dramatic surprises.
Conclusion
The nominations of Gould and McKernan mark an important step in shaping the future of financial regulation, particularly in the context of the crypto industry. As the Senate confirms these nominees, it will be crucial to monitor their actions and decisions, ensuring that they prioritize the needs of both consumers and industry players.
FAQs
Q: What is the Office of the Comptroller of the Currency (OCC)?
A: The OCC is a federal agency that regulates and supervises national banks and federal savings associations, as well as the federal branches of foreign banks.
Q: What is the Consumer Financial Protection Bureau (CFPB)?
A: The CFPB is a federal agency responsible for protecting consumers from unfair, deceptive, or abusive financial practices.
Q: What is a limited-purpose national bank charter?
A: A limited-purpose national bank charter is a type of banking charter that allows a bank to specialize in a specific area, such as crypto or fintech.
Q: What is a stablecoin?
A: A stablecoin is a type of digital currency that is pegged to the value of a traditional currency, such as the U.S. dollar.
Q: Who is Jonathan Gould?
A: Jonathan Gould is a lawyer with experience in the financial industry, having worked as a top lawyer at the OCC and a former crypto executive.
Q: Who is Jonathan McKernan?
A: Jonathan McKernan is a Republican member of the FDIC and a nominee to run the CFPB.
