Trump Open to Democrat Nominations for SEC and CFTC, Offering Hope for Senate Crypto Market Structure Bill
Former President Trump has indicated he is open to nominating Democrats to vacancies on the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), a move that could impact the stalled crypto market structure bill in the Senate.
The proposed crypto market structure bill aims to grant the SEC and CFTC broad regulatory powers over the crypto industry. Currently, the CFTC has no Democrat commissioners, and the SEC is expected to have none entering the new year. Both commissions consist of five members and require at least two minority-party commissioners to maintain bipartisan representation.
Senate Democrats have emphasized the need for guarantees of Democrat involvement in rulemaking for the bill to have a strong chance of passage. However, the Supreme Court is anticipated to overturn precedent and permit the president to fire agency commissioners at will, complicating efforts to sustain bipartisan oversight.
Even if Democrats are appointed under the bill, the power to remove them granted to the president could undermine such bipartisanship. The Senate Banking Committee plans to mark up the bill in early 2026, though formal consideration is not expected before January 2026. The timing of negotiations and the 2026 midterm elections are factors influencing this schedule.
