A16z has completed a new leadership transition that has seen Miles Jennings become the new head of policy. He replaced Brian Quintenz, who was nominated to head the United States Commodity Futures Trading Commission (CFTC). The decision was announced by founding partner Chris Dixon, who discussed Jennings’ contribution to the policy department.
Jennings served as the head of general counsel at a16z for three years, keeping a good track record while at the firm. Before a16z, he was a partner at Latham and Watkins, with a specialization on regulation and compliance.
The change is coming at a time when crypto regulation is seeing a rise in focus within Washington. Regulatory initiatives on stablecoins, market structure, and other aspects of the cryptocurrency industry have been under heavy focus with several discussions in Congress. The new legislation includes attempting to repeal a crypto tax rule and probes into banks’ curbs on cryptocurrency companies formed in the Biden administration.
Former a16z executive to join the CFTC
Brian Quintenz is reportedly returning to public service, with Trump nominating him to head the CFTC in February, but is yet to be confirmed by the Senate. Quintenz was a commissioner at the derivatives regulator between 2017 and 2021 and played a crucial role in the release of bitcoin and ether futures contracts.
According to reports, the CFTC and the SEC have recently reopened their conversation on crypto regulation following the period of inactivity. Speaking at the Future of FinTech Symposium at Milken Institute, Acting Chair Caroline Pham positively noted that the agencies have resumed discussions. She noted that more emphasis should be placed on collective endeavors to draw guidelines for the new regulations.
The decision was also backed by SEC Commissioner Hester Peirce, who pointed out that jurisdiction needs to be defined to avoid any overlap. She noted that users and investors should have a say in regulating issues that affect them. Peirce further mentioned that one of the significant tasks is to define the role of the SEC in regulating digital assets.
A recent proposal by the CFTC revealed a two-week grace period provided that the firms that have run into some compliance issues with the regulations would bring forward reasonable settlement offers. Pham clarified that fraud and market manipulation cases do not fit under the policy. “We are trying to move away from a regulation by enforcement approach and really bring policymaking back,” Pham said.
The agency has taken a more significant role in regulating digital assets during Trump’s presidency, including oversight of Bitcoin and Ethereum spot ETFs. The CFTC is also tracking the activity in the increasing trading market of crypto options this year.