The power game of one person holding two positions: Legal disputes arise over personnel arrangements in the Trump administration's anti-fraud department

The Trump administration is pushing forward a major power consolidation strategy. According to informed sources, government officials are considering appointing FTC Chair Andrew Ferguson to simultaneously serve as the head of the newly established Department of Anti-Fraud. While this arrangement appears efficient, it conceals deeper legal and power structure issues.

A New Experiment in Power Structure

Establishment and Authority of the New Department

Vice President Vance stated last week that this new department will be directly overseen by the White House and will have “nationwide jurisdiction” over fraud issues. At the same time, the Department of Justice will create a new Assistant Attorney General position responsible for leading specific fraud investigations.

What are the key features of this structural design?

The “Dual Identity” Dilemma of Ferguson

The core issue is: Can Ferguson hold two positions simultaneously?

According to the original news report, federal law explicitly prohibits FTC commissioners from “engaging in any other business, profession, or employment.” This legal provision directly conflicts with Ferguson’s dual roles. It is still unclear whether this regulation will affect Ferguson’s ability to hold the new position, but it is indeed a legal obstacle that needs to be addressed.

Deep Implications of the Power Structure Change

Blurred Boundaries

This architecture blurs the traditional lines between the presidency and the Department of Justice. This is no small matter. In the U.S. political system, the independence of the DOJ has long been regarded as a crucial check on power. Direct White House oversight of the anti-fraud department means the president can influence the direction and intensity of fraud investigations more directly.

From an observational perspective, this design reflects the current trend of power centralization under the Trump administration. Related information indicates that the Trump government is advancing power consolidation across multiple areas—from attempting to reorganize the Federal Reserve to launching various new administrative measures. The establishment of the anti-fraud department may be just part of this broader strategic effort.

Redundancy in Existing Departments

The DOJ already has several specialized units responsible for criminal and civil fraud investigations. What does the creation of a new department imply?

• Possibly to enhance coordination and efficiency
• Or to address shortcomings in existing departments in certain areas
• Or to establish a new power center directly controlled by the White House

Potential Impact on the Cryptocurrency Industry

Although the news report does not directly mention cryptocurrencies, the establishment of this new department is likely to involve the crypto sector. The phrase “nationwide jurisdiction over fraud” is broad enough to cover issues like cryptocurrency scams, rug pulls, false promises, and more.

Based on related background information, the Trump administration is pushing for the regulation and compliance of cryptocurrencies. This anti-fraud department could become a new tool to strengthen oversight of the crypto market. Notably, since the department is directly overseen by the White House, the determination of crypto-related fraud may be more influenced by political considerations.

Summary

This personnel arrangement by the Trump administration reflects a new trend of power centralization but also faces legal and institutional challenges. Whether Ferguson’s dual roles will be legally recognized remains uncertain. Even if legal obstacles are overcome, the impact of this new department on the existing power structure warrants close attention. For the cryptocurrency industry, this department could become a new regulatory force, with its scope and authority boundaries needing further clarification. In the short term, whether this arrangement can be effectively implemented remains to be seen.