Hearings to examine the nominations of Brian Quintenz, of Ohio, to be a Commissioner and Chairman of the Commodity Futures Trading Commission.

Agriculture, Nutrition, and Forestry Committee

2025-06-10

Source: Congress.gov

Summary

Mr. Brian Quintenz's nomination to be chairman of the Commodities Futures Trading Commission (CFTC) was considered during this hearing, where senators addressed his qualifications, previous experience, and vision for the agency's future [ 00:26:58 ] . The discussion focused on the CFTC's crucial role in regulating financial and agricultural markets, especially in light of rapidly evolving digital asset and derivatives landscapes [ 00:27:16-00:27:28 ] .

Themes

CFTC's Enduring Mandate and Regulatory Approach

The CFTC is recognized as a vital federal financial regulator overseeing agriculture, energy, and derivatives markets, essential for managing risk and ensuring commodity supply chain resiliency [ 00:27:16-00:27:28 ] . The agency's historical pragmatic, principles-based approach has fostered trust and confidence, leading to robust U.S. derivatives markets [ 00:27:33-00:28:01 ] . Quintenz pledged to continue this focus on risk, innovation, and international reciprocity, while also ensuring market integrity and customer protection . He also emphasized the agency's role as a systemic risk regulator, overseeing crucial financial entities like derivatives clearinghouses .

Digital Assets and Crypto Regulation

A significant portion of the discussion revolved around the CFTC's potential expanded authority to regulate spot digital commodity markets and new products like crypto-based derivatives [ 00:28:29-00:28:41 ] . Senators and Quintenz agreed that the CFTC is the appropriate agency due to its market knowledge and flexible regulatory approach [ 00:28:45-00:29:21 ] . Quintenz, drawing from his experience at A16Z Crypto, highlighted the global perspective on crypto regulation and the potential of blockchain technology beyond financial services . Concerns were raised about protecting retail investors from fraud and manipulation in this rapidly innovating space, and Quintenz suggested a "technology-first approach" for oversight [ 00:38:25-00:38:47 ]

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. Senator Tuberville also brought up the issue of Quintenz being "de-banked" due to his involvement with digital assets, illustrating perceived governmental pressure against the crypto industry [ 00:57:16-00:57:51 ]

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Market Innovation vs. Customer Protection

The balance between fostering innovation and safeguarding customers was a recurring theme . The potential for 24/7 derivatives trading raised concerns, especially for agricultural markets, where farmers fear price dislocation and being liquidated while asleep [ 00:40:40-00:40:44 ]

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. Quintenz assured senators that the agency would listen to agricultural stakeholders regarding such shifts . The discussion also touched on prediction markets, with Quintenz advocating for clear statutory definitions over subjective "value judgments" from regulators, emphasizing their potential for risk management .

Bipartisanship and Independence of the CFTC

Several senators, particularly Senator Smith and Senator Warnock, pressed Quintenz on his commitment to maintaining the bipartisan structure of the CFTC, given recent actions by President Trump removing Democratic commissioners from other agencies . While Quintenz emphasized his positive working relationships with commissioners from both parties during his previous tenure , he deflected direct questions about whether he would advocate for President Trump to nominate Democratic commissioners, stating that the President makes those decisions . This stance led to expressions of disappointment and concern about the potential erosion of the agency's independence [ 00:55:05 ]

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Recusal and Conflicts of Interest

Given Quintenz's recent role as Global Head of Policy for A16Z Crypto and his board position at Calchex, concerns about potential conflicts of interest and recusal were raised [ 00:43:34-00:43:55 ]

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. He affirmed his commitment to adhering to ethics statutes and regulations, including divestiture of financial interests and having a screener for inappropriate matters . However, Senator Booker voiced apprehension regarding the appearance of conflict, particularly given the political connections of some companies in the crypto space .

CFTC Resources and Staffing

The potential expansion of the CFTC's jurisdiction, particularly into spot digital commodity markets, prompted questions about the agency's capacity . Quintenz acknowledged that new jurisdiction would likely necessitate additional funding and staff to effectively manage oversight responsibilities . He committed to transparent communication with Congress regarding the agency's needs .

Tone of the Meeting

The tone of the meeting was largely formal and respectful [ 00:26:50 ] . While senators generally welcomed Mr. Quintenz and acknowledged his experience [ 00:27:05 ] , there were moments of pointed and firm questioning, particularly from Senator Smith and Senator Warnock regarding the CFTC's bipartisanship , and from Senator Booker on potential conflicts of interest . Mr. Quintenz consistently maintained a calm, professional, and composed demeanor in his responses, often referring to his past experiences and statutory mandates [ 00:40:35 ]

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. There was a bipartisan consensus on the importance of the CFTC's work and the need for clear regulation in the digital asset space [ 01:41:25-01:41:43 ]

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Participants

Transcript

Thank you.
Good afternoon.  It's my privilege to call this hearing to order.  I thank my colleagues for joining us today.  We will be considering the nomination of Mr. Brian Quintens to be chairman of the Commodities Futures Trading Commission.  Mr. Quintens, congratulations on your nomination.  We appreciate your willingness to serve.   And I also throw in your family's willingness to let you serve.  These are certainly family affairs.  The CFTC is the only federal financial regulator that oversees agriculture and energy risk management markets, and the resiliency of the derivative markets are critical to our commodity supply chains.   Well-regulated and efficient commodity markets help our producers manage risk as our farmers face elevated input cost, interest rate uncertainty, price volatility, natural disasters,   futures markets help producers protect themselves.  Over the years, the CFTC's pragmatic, principles-based approach has resulted in a workable regulatory framework for markets to function efficiently.  The CFTC has historically engaged in constructive dialogue with regulated entities and market participants, and this has built trust and confidence in the CFTC.   This constructive, flexible regulatory approach combined with diligent policing of the cash and derivative commodity markets has resulted in the U.S.  derivatives markets being the envy of the world.  It's my expectation that the commissioners entrusted with leading the agency will continue these practices that have served our country so well.  At the same point,   The role of the CFTC may expand as Congress, including this committee, considers granting the CFTC authority to regulate the spot digital commodity markets.
Additionally, new markets and products, such as prediction markets and crypto-based derivatives, have been developed, which will require the Commission's attention.  As I've said before, the CFTC is the right agency to regulate spot digital commodity training.   The CFTC and only the CFTC should regulate the trading of digital commodities.  It's because only the CFTC understands the unique characteristics of commodities and commodity-based contracts.  The market knowledge combined with its flexible, constructive regulatory approach is why it's the right regulator for spot digital commodity markets.  I look forward to hearing from Mr. Quintanz on these issues.   Again, congratulations on your nomination.  And I now turn to Senator Klobuchar.
Well, thank you very much, Mr. Chair.  And I know we'll be joined by several other members.  There are already a number here.  Thank you, Mr. Quintez, for being with us today.  And I'd also like to welcome your family, including your parents, Ken and Susan.   I see them over there.  And they seem proud of you.  I don't know, just so you know.  Your kids, Connor and Vivian, as well as Jenna.  So thank you all for being here.  The Commodity Future Trading Commission plays a vital role in ensuring the integrity of our financial and agriculture markets.  That includes protecting market participants from fraud and manipulation,   maintaining orderly derivative markets, and enabling farmers, ranchers, manufacturers, and small businesses to hedge against risk.  We meet at a pivotal moment for the CFTC as it faces a rapidly changing landscape across both derivatives and spot markets.  The agency is being called on to address not only the emergence of novel financial products and technologies, but also broader shifts in market structure.   including the growing influence of non-traditional platforms, as well as changes to established platforms.  These developments raise important issues and important questions about the scope of the CFTC's oversight and its ability to respond quickly and effectively to risk in complex and fast-moving markets.  To tackle these challenges head-on, I believe it is in the public interest   that the CFTC have not only a confirmed chairman but also a fully functioning commission with the bipartisan balance and independent structure that Congress intended.  I can't think of a more important time that we make sure that happens.  It is also essential that the CFTC have the institutional capacity, both in staffing and resources, to fulfill its mandate in the face of these emerging challenges.
That means protecting retail investors and other market participants, as I noted, from fraud and abuse, guarding against systemic risk, and ensuring transparent competitive markets.  At the same time, the CFTC must foster a regulatory environment that encourages responsible innovation and adapts to new technologies without compromising its core responsibilities.

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