Senate Confirms Jonathan McKernan as Under Secretary for Domestic Finance

According to Cointelegraph, the U.S. Senate has confirmed Jonathan McKernan as the Under Secretary for Domestic Finance at the Department of the Treasury. In a closely contested vote of 51 to 47, McKernan will serve under Secretary Scott Bessent. Despite the ongoing government shutdown, which began after lawmakers failed to extend funding beyond September 30, Congress continues to function in certain capacities. McKernan, nominated by U.S. President Donald Trump in June, has expressed opposition to debanking policies, though he has not directly linked these practices to digital assets. In a December post on X, he referenced an article by economist Tyler Cowen, questioning the integration of the U.S. banking system with cryptocurrency. As Under Secretary, McKernan will assist Bessent on economic issues, following in the footsteps of predecessors who have addressed topics like a central bank digital currency and collaboration with the Federal Reserve and FDIC on banking policies. Previously, McKernan served at the FDIC and was initially nominated to lead the Consumer Financial Protection Bureau before President Trump withdrew his nomination in May. The government shutdown, now in its eighth day, has slowed regulatory and legislative progress. A Republican-led stopgap bill to fund the government failed in the Senate, falling short of the required 60 votes with a tally of 54 to 45. Republicans hold a narrow majority and require Democratic support to reopen the government. Democrats have called for an extension of healthcare subsidies and a reversal of cuts from a July funding bill. While Congress can still confirm nominees and pass legislation, the shutdown has stalled approvals for exchange-traded funds at the Securities and Exchange Commission. Bipartisan support is likely needed for bills such as the market structure legislation for digital assets, which will probably be delayed until the shutdown concludes.