CFTC commissioner Johnson backs bipartisan regulation while bowing out

Johnson, whose term at the CFTC officially ended in April, said on Tuesday she will depart the watchdog on September 3, leaving the agency with just one commissioner, Caroline Pham, the acting chair.

In a speech to announce her departure, Johnson said: “Our bi-partisan Commission, characterised by consensus-driven decision-making, illustrates the strength of independent, democratic institutions and the value of well-calibrated, carefully-tailored regulation.”

The comment on the importance of bi-partisanship in US regulation is interesting because CFTC chair elect Brian Quintenz was guarded in his support for the bipartisan tradition when questioned by Senators in June.

The former CFTC commissioner and crypto advocate told his nomination hearing: “The president is the head of the executive. The president will make his own decisions with the advice and consent of Congress. But I would pledge to you that I would work with whoever is at the commission to keep the bi-partisanship spirit of the agency alive.”

The CFTC and equities regulator the Securities and Exchange Commission observe a convention where three of the five CFTC commissioners are aligned with the government and the other two are from the minority party but this is not written in law.

Johnson’s departure was well-flagged after she said in May she had informed the president of her decision to step-down, something she said at the time would happen “later this year”.

Johnson became CFTC Commissioner on March 30 2022, after being nominated by then-president Biden in September 2021.

In her tenure, Johnson proposed initiatives for evaluating cyber threats and integrating artificial intelligence in financial markets.

Quintenz will have to find four commissioners when he takes his position as all of the previous occupants of those seats have already left or are leaving in the coming months.