Michael Selig, chief counsel for the crypto task force at the US Securities and Exchange Commission, recently appeared before the Senate Agriculture Committee to address questions and concerns from lawmakers regarding his nomination to be the next chair of the Commodity Futures Trading Commission. The hearing took place on Wednesday, with Selig fielding inquiries on potential conflicts of interest, his policy views, and his experience for the role, succeeding Caroline Pham.
In his opening statement, Selig emphasized his experience advising a diverse range of market participants, including digital asset companies. He cautioned against the agency adopting a regulation-by-enforcement approach, warning that such a strategy could drive businesses offshore. Selig highlighted the current financial market landscape, stating, "We’re at a unique moment in the history of our financial markets. A 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."
The confirmation of Selig, who was nominated by US President Donald Trump to chair the CFTC, is anticipated to proceed to a vote soon. This nomination follows the removal of Trump's initial pick, Brian Quintenz. According to the Senate calendar, the Agriculture Committee is scheduled to discuss Selig's nomination on Thursday.
Addressing DeFi, Crypto Enforcement, and Agency Roles
Selig responded to questions from Committee Chair Senator John Boozman, who expressed support for the CFTC taking a leading role in regulating spot digital commodity markets. These remarks come as the committee is expected to consider a market structure bill that would grant the CFTC increased authority over crypto. Senator Boozman stated, "The CFTC, and only the CFTC, should regulate the trading of digital commodities."
The senator from Arkansas also inquired about Selig's potential approach to decentralized finance (DeFi) if confirmed. This issue has reportedly been a point of division among lawmakers concerning the market structure bill. Selig commented on DeFi, saying, "When we’re thinking about DeFi, it’s something of a buzzword, but really we should be looking to onchain markets and onchain applications and thinking about the features of these applications as well as where there’s an actual intermediary involved."
In response to a question about regulating crypto, particularly spot digital asset commodity markets, Selig stressed the importance of oversight, stating it was "vitally important that we have a cop on the beat."
Democratic Concerns Regarding CFTC Leadership
Senator Amy Klobuchar, the ranking Democratic member of the Agriculture Committee, raised concerns about the current leadership at the CFTC. Since September, acting Chair Caroline Pham has been the sole commissioner at the agency, which typically has five members. Pham is expected to resign if Selig's confirmation is approved by the Senate.
Klobuchar noted, "The CFTC has operated much of the last year without a full complement of bipartisan commissioners, and has been operating for months with only an acting chairman. This uncertainty surrounding the leadership at the CFTC has only created more chaos for people who rely on the CFTC."
Selig acknowledged the value of diverse perspectives, stating it was "very valuable to have a diversity of viewpoints," and affirmed his commitment to "work with whoever the president chooses to appoint." As of Wednesday, President Trump had not announced any additional nominations for CFTC commissioners, leaving four vacant seats should Selig be confirmed and Pham depart.