Trump’s CFT Chair Nominee Asks Congress to Allocate Crypto Spot Market Regulation to the CFTC

Brian Quintenz, the head of policy at crypto firm a16z, has endorsed a shift in regulatory jurisdiction for crypto spot markets to the US CFTC.

Quintenz, who is Donald Trump’s nominee for the new Commodities Futures Trading Commission (CFTC) chair, made the comments in a prepared remark on Tuesday, prior to his confirmation meeting.

He asked Congress to expand the US CFTC’s purview beyond the futures market to include the spot crypto commodity market. Among others, he also pledged a clear regulatory framework for digital assets, calling the innovation transformative.

Quintenz Pledges Clear Digital Assets Classification

Notably, Trump endorsed the Andreessen Horowitz’s a16z executive as the new CFTC chair under his administration in February. As part of the confirmation process, Quintenz would meet with the US Senate Agriculture Committee today for his hearing.

Ahead of this hearing FOX journalist Eleanor Terret reported that the former CFTC commissioner is already making demands from Congress. One of which is to give the futures market regulator control of the crypto spot commodity market.

Quintenz stated in his prepared remarks that this might turn out to be the most significant and thrilling period in the agency’s history, as Congress evaluates the possibility of granting the agency new authority over the spot crypto commodity markets.

He emphasized the need for regulatory clarity, particularly regarding the classification of crypto tokens. Remarkably, the boiling issue was part of the stumbling block in the crypto industry’s fallout with the Gary Gensler-led US Securities and Exchange Commission (SEC).

While the current administration has made significant progress, Quintenz insinuates that the CFTC would better regulate the spot commodity market. He further pledged a clear framework, classification, and jurisdiction for overseeing the trading market.

Meanwhile, the former CFTC commissioner is not the first to suggest the move; Coinbase made a similar proposition to Congress in February. If this pulls through, it will diminish the US SEC’s regulatory role in the digital asset sector.

Quintenz’s View of Blockchain Technology

Furthermore, he shared that blockchain technology and cryptocurrencies are not going away. As a result, there is a need for proper regulation. His remarks also noted that blockchain extends beyond the financial market, affecting various aspects of society.

Quintenz highlighted that he would leverage his experience in the crypto sector with a16z to right the wrongs previously done by regulators. He also emphasized his intolerance for bad actors and aims to maintain the CFTC’s focus on striking a balance between risk and innovation.

Interestingly, Quintenz holds crypto assets worth $3.4 million, a testament to his strong belief in the innovation. However, he stated earlier that he would liquidate any that pose a conflict of interest upon confirmation as CFTC chair.