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US President Donald Trump announced that he is willing to consider nominating Democratic commissioners to occupy the available vacancies at the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) this week. His remarks mark the first time in history that Trump is open to such a move.
Analysts commented on this decision, noting that it is a significant move for the crypto ecosystem, as it could help pass the crypto market structure bill that has been delayed in the Senate.
This situation has prompted several reporters to reach out to the president for comment on the topic under discussion. Responding to their question regarding his openness to consider appointing Democrats to federal agencies such as the SEC and CFTC, Trump mentioned that, “There are certain areas we do look at, and certain areas that we do share power, and I’m open to that.” He made this statement on Monday, December 15, in the Oval Office.
Trump demonstrates interest in working with Democrats at the CFTC and SEC
Following Trump’s recent decision, sources close to the situation have hinted that the law requires five-member commissions, such as the SEC and CFTC, to include not fewer than two commissioners from a minority political party.
This requirement was made public after it was confirmed that the CFTC currently lacked Democratic commissioners. The SEC, on the other hand, was expected to have none come next year. At this point, the US president had not demonstrated any plans to fill these vacancies at either of the financial regulators.
However, Trump decided to embrace substantial steps to eliminate Democratic leaders who came from other federal agencies this year. According to reports, he stated that he aims to challenge a legal regulation that has prevented other presidents from carrying out this practice for 90 years.
To illustrate the intense nature of the situation, reliable sources reveal that the Supreme Court recommended last week that it might revoke this rule and permit Trump to remove federal agency commissioners at his discretion. This suggestion could subsequently lead to the end of their independence.
The president argued that if he were a Democratic president, he would not consider appointing Republicans to federal agencies. “Do you think they would choose Republicans if it were their decision?” Trump asked. “Usually, they don’t pick Republicans.”
Still, sources pointed out that every president in the last few years, from both Republican and Democratic parties, has appointed members from the opposing party to lead federal agencies, adhering to federal law.
In the meantime, analysts have highlighted that the issue of bipartisan federal agencies has resulted in significant consequences for the crypto market structure bill currently being pushed through the Senate, particularly during Trump’s presidency.
The primary goal of this bill is to legalise most aspects of the current crypto industry and grant the SEC and CFTC authority over the development of regulations for the crypto ecosystem.
Senate Democrats call for the need for Democratic participation in rule-making processes
Leading Senate Democrats weighed in on the possibility that the SEC and CFTC could be granted authority over the development of regulations for the cryptocurrency ecosystem. They argued that they required assurance that there would be Democratic participation in this process of creating rules. According to them, without this assurance, the bill might encounter hardship in passing.
Meanwhile, sources pointed out that Trump’s statement released this week may calm Senate Democrats’ concerns raised earlier regarding his willingness to maintain bipartisanship among federal regulators.
Nonetheless, even with this declaration, reports noted that if the Supreme Court permits the president to eliminate agency commissioners at will, he could still appoint Democrats to certain positions and dismiss them at his pleasure.
It is worth noting that the crypto market structure bill has been moving sluggishly in the Senate. To address this issue and likely pass it as soon as possible, a team of negotiators from both parties is attempting to strike an agreement on this significant piece of legislation.
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