Senator sees little chance of approving a bill on cryptocurrencies without the appointment of Democrats to the SEC and CFTC

Source: PortaldoBitcoin Original Title: Senator Sees Little Chance of Approval for Cryptocurrency Legislation Without Democrats Appointed to SEC and CFTC Original Link: Senator Cory Booker (Democrats/New Jersey), one of the main negotiators of the cryptocurrency market structure bill, which is being closely watched in the Senate, said on Tuesday that he would not trust any promises from the White House about appointing Democrats to key positions in financial regulatory agencies. He also stated that the lack of a meaningful approach to the issue could jeopardize the bill’s chances of passing.

Booker expressed dismay that the Supreme Court now appears poised to grant President Donald Trump the authority to dismiss commissioners of agencies like the SEC and CFTC at will. A bill regarding the cryptocurrency market structure would give these regulators enormous powers to shape cryptocurrency regulation.

“This is a deep concern,” Booker said. “It’s a massive expansion of presidential power. We’ve seen what has been done with this power, to benefit friends in a very corrupt manner.”

Booker stated that he is pushing, in bipartisan negotiations on the market structure bill, to ensure that regulatory agencies like the CFTC and SEC remain “balanced and fair.”

These agencies, composed of five members, are legally required to have two commissioners from a minority party. But President Trump has resisted attempts so far to appoint Democrats to the two regulatory bodies. In January, neither agency will have Democratic commissioners.

Booker said he has made it “directly clear” to the White House that if the president does not appoint Democrats to the SEC and CFTC, it “would harm our ability” to pass the market structure bill.

When asked if a White House promise regarding Democratic commissioners would be enough to secure his vote on the bill, Booker replied: “No. My God, no.”

The senator stated that it would be “counterproductive” to discuss his ongoing private conversations with Republican senators when pressed on what legislative solutions, if any, would make him comfortable enough to vote in favor of the market structure.

Earlier that day, Booker stated during a panel that he was “optimistic” that the market structure bill for cryptocurrencies would be passed.

Democratic Senators Trying to Pass the Bill

But the issue of minority commissioners has become an increasing obstacle for Democratic senators trying to pass the bill. On Monday, the Supreme Court signaled that it will likely soon overturn a 90-year-old precedent that prevents the president from dismissing commissioners of federal agencies, except in extraordinary circumstances.

The case has long been considered a safeguard of the independence of federal regulatory agencies. If the decision is overturned, it would mean that the president could remove Democrats from the SEC and CFTC at any time in the future — even if he appoints them now to secure the bill’s approval.

A possible solution to the problem would be including a clause — which could be inserted into the market structure bill — ensuring that the SEC and CFTC can only operate if they meet the bipartisan quorum of commissioners. Democratic senators considered this clause until mid-December, according to sources familiar with the matter.

But it is unclear whether the Trump administration would accept such a restriction on its autonomy. When Mike Selig, appointed by the White House to lead the CFTC, was questioned about the minority commissioners issue during his Senate confirmation hearing last month, he reiterated his belief that the agency can function without Democrats.

If confirmed, Selig, a Republican, would be the only commissioner operating an agency that should be managed by a bipartisan five-member group.

“The CFTC can operate with a single chair,” Selig said during the hearing.