US Senate Appoints Treasury Official Amid Ongoing Government Shutdown
The Senate confirms Jonathan McKernan as the under secretary for domestic finance, impacting banking policies during the government shutdown.
A majority of U.S. Senators have confirmed Jonathan McKernan as the under secretary for domestic finance at the Treasury Department. In a pivotal vote that took place on Tuesday, the Senate approved McKernan’s appointment with a narrow margin of 51 to 47, allowing him to serve under Secretary Scott Bessent.
Despite the ongoing government shutdown that began when lawmakers failed to pass a funding bill before September 30, Congress’s functions can continue. McKernan was nominated by former President Donald Trump in June and has previously expressed skepticism towards government debanking policies, although he has not linked this directly to digital assets.
In a December X post, he referenced an economist’s article questioning the U.S. banking system’s ability to integrate with cryptocurrency.
McKernan’s Official Image
Source: Jonathan McKernan on X
In his new role, McKernan will assist in addressing matters relating to the U.S. economy. Previous undersecretaries have participated in discussions concerning a potential central bank digital currency and coordination with the Federal Reserve and FDIC on banking regulations.
Government Shutdown’s Impact on Legislation
The current government shutdown has impeded both regulatory approvals and legislative progress. As of Wednesday, it has reached its eighth day. A proposed stopgap funding bill led by Republican senators failed to secure the needed votes, highlighting the chamber’s delicate balance of power.
Republicans, who currently possess a slim majority, require Democratic support to reopen the government. Democrats are advocating for an extension of healthcare subsidies and the reversal of specific cuts made in a funding bill from July.
Even though they can continue confirming nominees and passing certain legislation, critical approvals for exchange-traded funds at the SEC have been stalled. Subsequent bills that likely demand both parties’ support, including those that would establish a framework for digital assets, may also see delays until after the shutdown concludes.
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