Michael Selig outlines his stance on digital asset regulation as lawmakers weigh expanding CFTC authority
Michael Selig, the current chief counsel for the crypto task force at the U.S. Securities and Exchange Commission, faced sharp questioning from senators as he sought confirmation to become the next chair of the Commodity Futures Trading Commission. His testimony comes at a moment when U.S. digital asset regulation is undergoing major shifts and the CFTCâs leadership remains unsettled.
Digital asset regulation takes center stage
Appearing before the Senate Agriculture Committee, Selig emphasized the need for clear rules instead of reactive enforcement actions.
He warned that regulating through punishment could drive American crypto businesses offshore, weakening the countryâs competitiveness.
âWeâre at a unique moment in the history of our financial markets,â Selig said. âA wide range of new technologies, products, and platforms are emerging… the digital asset economy alone has grown from a mere curiosity to a nearly $4 trillion market.â
His nomination follows the withdrawal of the administrationâs first choice for the role, placing Selig at the forefront of the debate over how the U.S. should govern digital commodities, decentralized finance, and new forms of trading infrastructure.
Selig calls for a âcop on the beatâ for spot digital commodities
Committee chair Senator John Boozman pressed Selig on how he would approach decentralized finance, an issue that has divided lawmakers drafting a new market structure bill.
âThe CFTC, and only the CFTC, should regulate the trading of digital commodities,â Boozman said, reiterating his push to expand the agencyâs authority.
Selig responded that DeFi should not be treated as a monolith.
âWhen weâre thinking about DeFi, we should be looking to on-chain markets and evaluating where an actual intermediary exists.â
He added that it is âvitally important that we have a cop on the beatâ to supervise spot digital asset commodity markets.
Concerns grow over leadership gaps at the CFTC
Senator Amy Klobuchar highlighted the instability produced by months of minimal leadership at the agency.
âThe CFTC has operated much of the last year without a full complement of bipartisan commissioners,â she said.
If confirmed, Selig would replace acting Chair Caroline Phamâthe sole current commissionerâleaving four vacancies until new appointments are made.
Selig said he believes it is âvery valuable to have a diversity of viewpointsâ and committed to working with future commissioners once nominated.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.