- Mike Selig confirmed as CFTC chair, aiming to boost US crypto innovation and global competitiveness.
- Selig favors light-touch DeFi regulation but defers on prediction markets and staffing expansion.
- Pending crypto legislation could expand CFTC oversight, raising concerns over agency capacity and readiness.
US Senators confirmed pro-crypto lawyer Mike Selig to head the Commodity Futures Trading Commission (CFTC) on Thursday. The decision signals a pivotal shift in the US regulatory approach to digital assets.
Selig replaces interim Chairwoman Caroline Pham, who recently joined crypto payments firm Moonpay as chief legal officer. The confirmation comes as Congress debates a crypto market structure bill, potentially giving the CFTC expanded oversight of cryptocurrency markets.
Selig, a former partner at Willkie Farr & Gallagher, previously served as chief counsel at the SEC’s Crypto Task Force. He also advises SEC Chair Paul Atkins on integrating equities markets with blockchain technology.
During his confirmation hearing in November, Selig emphasized his commitment to facilitating “Well-Functioning Commodity Markets, promote Freedom, Competition and Innovation, and help the President make the United States the Crypto Capital of the World.” His statement underscores the administration’s intention to attract crypto entrepreneurs back to the US amid global competition.
A Pro-Crypto Agenda and Regulatory Challenges
Selig indicated he favors a light-touch approach to decentralized finance (DeFi). He highlighted that regulatory focus should consider whether an operator or administrator is involved in onchain markets. “In many cases, that may not be. And so we have to think about the best approach,” he explained. Moreover, he stressed the need for comprehensive crypto laws to prevent innovation from moving offshore.
However, Selig avoided firm commitments on prediction markets and the CFTC’s staffing needs. Senators repeatedly questioned him about agency capacity and jurisdiction over prediction markets.
Democrats and casino lobbyists were irritated when Selig ceded regulatory authority to the courts. This conflict stems from continuous discussions regarding the differences between prediction markets and gambling as well as the agency’s capacity to handle increased obligations.
The CFTC has functioned under a single interim chair since September, creating concerns about oversight capability. Traditionally, the commission includes four commissioners and a chairperson. Senators worried that pending legislation granting crypto market oversight could overwhelm current staff. Selig expressed support for diverse viewpoints but did not confirm plans to expand personnel immediately.
