Independent Financial Regulatory Agencies

In principle, central coordination of the federal regulatory agencies could be helpful - but in practice, White House influence on regulators will subordinate financial stability to other, political objectives.

Financial regulation is. Mess, and subject to much industry capture. See SVB for latest indication of competence. An energetic wh could reform. Or could channel even more rent seeking behavior.

The White House could in principle provide effective coordination and oversight, but in practice would probably bring in an excessively political short term perspective. Depends on who is in the White House.

Some form of independence is meant to strike a balance, maintaining regulatory accountability but limiting potential politicization. Putting an agency under direct Executive branch control removes that buffer and raises the risk of instability.

I chose uncertain because of the word "substantial". In some situations, I believe it is appropriate for the executive branch to provide leadership. E.g., the dysfunctional 'regulation by enforcement' of digital assets space over the past 4 years. That has changed with new admin.

Compromised independence

Look at all the gesticulating to the crypto industry as an example of what to expect.

It depends on the nature of the intervention. For insurance, where the regulatory environment is fragmented due to the state-level regulation, federal oversight can help. Such initiatives can also help to harmonize and coordinate regulation of banks and insurers.

Separation of powers.

I’m not stability is the primary concern, but independence of financial regulation has many benefits. Stability could be one of them, though would also be a function of who is in the White House. If political aims are fighting market movements, that can cause instability.

Clear, stable, rule-based, and centralized financial regulation can provide the best support for competitive and efficient markets, but credit and financial policies are often used for political purpose — and are in the U.S. — and some independence (see Fed, SEC, etc.) is best.

Regulatory overlap creates confusion, with multiple agencies interpreting and enforcing the same rules differently (see URL). Reducing duplication could improve enforcement and reduce policy uncertainty. However, centralizing oversight under the White House is not the solution.
-see background information here

Independent review by an expert commission provides the best chance for impartial, technical analysis, and ultimately for financial stability