Trump’s CFTC Reform: Innovation-Friendly Policies to Challenge Biden’s Restrictions

The Trump transition team is currently reviewing possible candidates to lead the Commodity Futures Trading Commission (CFTC), aiming to reverse the Biden administration’s strict regulatory stance on cryptocurrencies and encourage broader use of digital assets. Sources familiar with the matter say that both current and former CFTC officials—Jill Sommers, Summer Mersinger, and Josh Sterling—are among the top names being considered. The final decision is expected after the Treasury secretary is named, as the transition team is focusing on financial regulatory appointments once major economic roles are filled.

Historically, the CFTC has overseen derivatives markets and played a secondary role in financial regulation, but its influence is expected to grow under Trump. This change is driven by the crypto sector’s call for clearer regulations and the transition team’s commitment to reforming current policies. While Biden-era officials have taken legal action against crypto companies for alleged breaches of securities and anti-money laundering rules, the Trump team intends to create a regulatory environment that encourages digital asset growth.

Summer Mersinger is widely seen as the leading candidate. As a Republican commissioner at the CFTC, she has pushed for the agency to establish regulations for the crypto industry and previously worked as a senior adviser to Senate Republican leader John Thune, who plays a significant role in financial policymaking. Jill Sommers, a former CFTC commissioner now with Patomak Global Partners in Washington, is also being considered. She has experience defending crypto companies in enforcement cases, which aligns with the industry’s preference for more flexible oversight.

Josh Sterling, a partner at Milbank and former CFTC official, is another notable contender. He currently represents the prediction market platform Kalshi and has contributed to shaping policies for derivatives markets. The transition team is also said to be evaluating other potential nominees, such as Mike Selig from the Securities and Exchange Commission (SEC) and Tyler Williams from the Treasury Department.

The CFTC is currently led by five commissioners, split between three Democrats and two Republicans. Caroline Pham, the other Republican commissioner, is also under consideration, having introduced proposals to advance digital asset initiatives. The President appoints the CFTC chair, who must be confirmed by the Senate, and no more than three commissioners can belong to the same political party at any given time.

The transition team’s discussions follow the Trump administration’s decision to halt the nomination of former CFTC commissioner Brian Quintenz, after objections from the crypto and gambling sectors. Quintenz, who was supported by prominent venture capitalist Marc Andreessen, faced opposition from crypto leaders like Tyler and Cameron Winklevoss. As a result, the nomination process was paused, leading to the search for alternative candidates.

The CFTC’s involvement in cryptocurrency oversight is set to increase as the Trump administration works to establish the U.S. as a leader in digital assets. The agency’s future agenda will likely focus on balancing regulatory supervision with encouraging innovation, in line with industry calls for transparent and stable rules. With the transition team prioritizing deregulation and economic growth, the selection of the next CFTC chair will indicate the administration’s strategy for navigating the rapidly changing crypto sector.