The U.S. Senate has confirmed Jonathan McKernan as the Under Secretary for Domestic Finance at the Department of the Treasury, marking a significant milestone in the government’s restructuring amidst the ongoing federal shutdown. In a closely divided vote, McKernan secured his position with 51 votes in favor and 47 opposed. He will report to Secretary Scott Bessent, paving the way for crucial economic policy coordination. McKernan’s nomination was unveiled by President Donald Trump in June, and he has expressed a firm stance against debanking policies. Notably, while he acknowledges the growing role of digital assets like cryptocurrency in financial innovation, he hasn’t directly linked his views to this sector. McKernan’s appointment marks another step towards a more defined economic agenda within the Treasury department. This follows similar paths taken by previous Under Secretaries who have addressed issues such as a potential central bank digital currency and collaboration with the Federal Reserve and FDIC on banking policies. He previously served at the FDIC, but before his confirmation to this position, he faced challenges including his initial nomination for leadership of the Consumer Financial Protection Bureau which was withdrawn by President Trump in May. The government shutdown’s impact is felt across various sectors; regulatory approvals have slowed down due to a lack of legislative progress. The Senate’s recent failure to pass a stopgap funding bill, falling short of the required 60 votes, highlights the complex political dynamics at play. This has resulted in a delay for crucial approval processes for exchange-traded funds (ETFs) at the Securities and Exchange Commission, showcasing the shutdown’s impact on financial markets. The delay in approvals underscores the need for bipartisan support to move forward on bills like the market structure legislation aimed at regulating digital assets, highlighting the potential disruption this prolonged shutdown may cause.