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Michael Selig, the chief counsel for the crypto task force at the US Securities and Exchange Commission, took center stage recently as he faced lawmakers from the Senate Agriculture Committee. They were there to discuss his nomination as the next chair of the Commodity Futures Trading Commission (CFTC).
This past Wednesday, Selig appeared before the committee, engaging with questions from lawmakers across the political spectrum about potential conflicts of interest, his views on policies, and his experience to lead the CFTC, following Caroline Pham’s tenure.
In his opening remarks, Selig shared that he has advised a variety of market participants, including digital asset companies. He cautioned against a regulation-by-enforcement strategy, warning that it might push companies outside the US.
“We’re at a pivotal point in the story of our financial markets,” Selig stated. “A plethora of new technologies and platforms are springing up […] the digital asset economy has transformed from a curiosity into a nearly $4 trillion market.”
The confirmation vote for Selig, who was nominated by US President Donald Trump to chair the CFTC after his first choice, Brian Quintenz, was removed, is anticipated soon. The Agriculture Committee has scheduled to discuss his nomination on Thursday.
Discussing DeFi, Crypto Enforcement, and Agency Roles
The future CFTC chair tackled questions from the committee chair, Senator John Boozman, who believes the agency should take the lead in regulating spot digital commodity markets. This conversation comes as the committee prepares to examine a market structure bill that would grant the CFTC greater authority in the crypto space.
“Only the CFTC should regulate the trading of digital commodities,” emphasized Boozman.
Related: SEC’s push to shape crypto regulations for the future
Senator Boozman then probed Selig about how he’d handle decentralized finance if confirmed, an issue that has divided many lawmakers on the market structure bill.
“When we think about DeFi, it’s a buzzword, but we should focus on onchain markets and applications, considering their features and where intermediaries are involved,” Selig explained.
He further reiterated the need for “a cop on the beat” when it comes to regulating crypto, especially in spot digital asset trading.
Democratic Concerns About CFTC Leadership
Senator Amy Klobuchar, the Democratic ranking member of the Agriculture Committee, challenged Selig about the CFTC’s leadership. Since September, the acting Chair, Caroline Pham, has been the only commissioner at the agency, which is typically staffed by five members. Pham is likely to step down if Selig is confirmed.
“For much of the past year, the CFTC has been operating without a full team of bipartisan commissioners and has faced months of uncertainty with just an acting chairman,” Klobuchar voiced. “This instability is creating chaos for those who depend on the CFTC.”
Selig acknowledged that “having a diversity of viewpoints is invaluable,” and assured that he would “collaborate with whoever the president decides to appoint.” As of Wednesday, Trump has not yet revealed any further nominations for the CFTC commissioners, leaving four positions open if Selig is confirmed and Pham resigns.
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