New Acting Chair of the CFTC Announced

This week the US CFTC announced (click here) the unanimous appointment of Commissioner Caroline Pham as the acting-Chairwoman of the CFTC.

What is it about?

• As a US Federal entity, Commissioners at the CFTC are political appointees. Rostin Behnam, the previous and Democrat-appointed Chairman, stepped down on 20 January and will leave the CFTC on 7 February. He is replaced by the energetic Caroline Pham, a Republican-appointed Commissioner who has served as a Commissioner at the CFTC since 2022 (Commissioners Pham’s bio can be found here). Pham does not need to be confirmed by the US Senate as Chairwoman as she is already a sitting Commissioner;
• Under Acting Chairwoman Pham’s stewardship, significant reform at the CFTC is likely. She has previously called (click here) for a Government Accountability Office (GAO) review of the CFTC’s activities. It is possible that she may pursue such a review prior to advancing any significant reforms;
• Often outspoken, Acting Chairwoman Pham has never shied away from taking contrarian positions which may appear as pro-business to some. Her sentiments include a distaste for what she has wryly described as the CFTC’s “ready, shoot, aim” approach to enforcement. The next few years will unlikely be a repeat of the previous few years at the CFTC.

Acting Chairwoman Pham has not wasted any time announcing (click here) a flurry of new appointments in her first week including a new Acting Director of the Division of Market Oversight (Amanda Olear) and Acting Director of the Division of Enforcement (Brian Young).

In a brief statement regarding her appointment (click here), Acting Chairwoman Pham made the following statement rooted in a “back to basics” mantra:

"I’m humbled and grateful to be entrusted by President Trump to lead the CFTC as we approach a significant milestone in our history with tremendous opportunities ahead…..As the CFTC celebrates our 50th anniversary, we must also refocus and change direction with new leadership to fulfil our statutory mandate to promote responsible innovation and fair competition in our markets that have continually evolved over the decades. It’s time for the CFTC to get back to the basics."

 RegTrail Insights

The next few years will undoubtedly see some significant changes at the CFTC should Acting Chairwoman Pham remain at the helm.