Jonathan McKernan was confirmed 51–47 as Under Secretary for Domestic Finance on Oct. 8, 2025, giving the Treasury a key role in shaping banking policy and discussions around a US central bank digital currency (CBDC). This position links Treasury policy to the Federal Reserve and FDIC on digital asset and banking oversight.
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Senate confirmation: McKernan confirmed 51–47 as Under Secretary for Domestic Finance.
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Impact on crypto policy: Treasury influence on a US digital dollar and coordination with the Fed and FDIC.
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Government shutdown: regulatory actions like SEC ETF approvals likely delayed; bipartisan bills postponed.
Meta description: Jonathan McKernan confirmation strengthens Treasury influence on banking and a US digital dollar; read implications for crypto policy and regulatory delays. Learn more.
What does Jonathan McKernan’s confirmation mean for Treasury policy and crypto?
Jonathan McKernan’s confirmation as Under Secretary for Domestic Finance gives the Treasury greater influence on banking policy and federal coordination on a potential US central bank digital currency (CBDC). He will advise Secretary Scott Bessent and coordinate with the Federal Reserve and FDIC on regulatory approaches that could affect digital asset markets.
McKernan, nominated by President Donald Trump in June, has prior experience at the FDIC and was once nominated to lead the Consumer Financial Protection Bureau. He has publicly discussed banking integration with crypto, referencing commentary from economist Tyler Cowen.
Source: Jonathan McKernan
How could McKernan influence a US digital dollar and banking regulation?
As Under Secretary for Domestic Finance, McKernan will help shape Treasury positions on a US digital dollar and interact with financial regulators. Former undersecretaries have engaged on CBDC policy, Treasury-Fed coordination, and FDIC deposit insurance questions.
Practical effects may include: short-term guidance to federal agencies, participation in interagency CBDC working groups, and public statements that frame regulatory priorities. These steps can influence market expectations and policymaking timelines.
Why will the government shutdown slow crypto-related regulatory progress?
The US government shutdown, on its eighth day, has constrained full agency operations. The Senate failed to pass a stopgap funding bill, leaving many regulatory processes, such as Securities and Exchange Commission (SEC) approvals for exchange-traded funds, effectively paused.
Even while confirmations continue, resource-limited agencies postpone complex rulemakings and approvals. Market-structure legislation and bipartisan bills that require cross-party support are likely delayed until funding is restored.
When will delayed crypto approvals and bills likely resume?
Regulatory and legislative actions typically resume once appropriations or a continuing resolution restores full funding. Short-term confirmations can proceed, but substantive rulemaking, SEC approvals, and bipartisan market-structure negotiations generally wait for restored staffing and stakeholder engagement.
Frequently Asked Questions
How did the Senate vote on McKernan’s confirmation?
The Senate confirmed Jonathan McKernan by a 51–47 vote. The result allows him to begin duties supporting Treasury leadership on domestic finance issues.
Will McKernan’s confirmation speed up CBDC work?
McKernan’s role strengthens Treasury involvement but a CBDC requires coordinated Fed action and likely legislation; the confirmation clarifies Treasury leadership but does not by itself create a CBDC.
Key Takeaways
- Confirmation outcome: Jonathan McKernan confirmed 51–47 as Under Secretary for Domestic Finance.
- Policy influence: The position enhances Treasury coordination with the Federal Reserve and FDIC on CBDC and banking policy.
- Operational impacts: The government shutdown has delayed SEC approvals and bipartisan market-structure legislation, slowing crypto-related regulatory actions.
Conclusion
Jonathan McKernan’s confirmation consolidates Treasury influence over domestic finance and the interagency conversation on a potential US digital dollar. With the government shutdown limiting agency activity, substantive regulatory actions are likely delayed. Watch Treasury statements and interagency coordination for the next signals on CBDC and banking policy.
