Washington has a new power player in its financial ranks, and his arrival could mean big changes for how the government sees banks and the booming world of crypto. Jonathan McKernan just won confirmation as the Deputy Assistant Secretary for Domestic Finance at the U.S. Treasury. This key role signals a possible shift in Washington’s approach to financial policy.
The Senate approved McKernan’s nomination with 51 votes in favor and 47 against. Treasury Secretary Scott Bessent was quick to praise the choice. He called McKernan "an ideal leader" ready to boost the nation’s economy. Bessent believes McKernan will play a major part in "reversing government overreach" and "building the foundation of a new Golden Age for America," according to a report from The Block.
Bessent himself was once considered for a different top financial spot by former President Donald Trump. Later, Bessent reportedly championed McKernan for this Treasury role instead. Market watchers saw this as a clear sign. It points to more market-friendly policies and less government interference.
McKernan’s Take on Money Moves
Before stepping into his new Treasury job, McKernan served on the board of the Federal Deposit Insurance Corporation (FDIC). He built a name for himself there, known for his deep technical understanding and his focus on keeping financial institutions stable. But he also spoke out against what he felt was too much regulation that held back new ideas.
McKernan hasn’t openly discussed "crypto debanking," which is when banks cut ties with crypto businesses. Still, he has shown support for leaders who want banks and the Blockchain world to work closer together. On X, he once quoted a piece by economist Tyler Cowen. Cowen’s essay talked about how the U.S. banking system was losing its edge.
McKernan himself wrote about the issue. He stated, "The US banking system is becoming less attractive. It is failing various market tests. How innovative is it? Can it integrate with cryptocurrencies? Relative performance is falling, there is no other way to put it."
💥 ¡Confirmado! Jonathan McKernan es el nuevo subsecretario del Tesoro en EE.UU.
Se aprobó su nominación con 51 votos a favor y 47 en contra.
McKernan cuestiona el exceso de regulación y se opone al “debanking cripto”.
Se espera que su gestión abra un nuevo camino para el… pic.twitter.com/FKTsPolcok
— Diario฿itcoin (@Blaze Trends)
A Friend for the Crypto World?
Many digital asset leaders have welcomed McKernan’s comments. One such figure is Austin Campbell, CEO of Worldwide Stablecoin Payment Network, whom McKernan has publicly praised. This kind of backing suggests that the new Treasury leadership might take a more balanced view on new financial technologies.
During his Senate Finance Committee confirmation hearing in July, McKernan laid out his main goal. He said his top priority would be "to advocate for reforms that drive growth, both within and outside the financial system."
He further explained that the Office of Domestic Finance, under his leadership, "will encompass institutions, markets, and financial stability, all essential for creating more jobs, wealth, and prosperity for Americans."
A New Direction for Washington’s Money Policy
McKernan’s move to the Treasury truly marks a turning point for how the U.S. handles its economy. His time in office could lean towards less strict rules and a more practical outlook on how traditional banking and cryptocurrencies fit together.
It’s too early to predict exact policy shifts. However, his past actions hint that he will be a strong voice in reshaping the government’s role in the digital economy. For those pushing for a more innovative financial system, his appointment offers a chance. They hope it can lead to rethinking regulations without giving up stability or public trust.