Senate grills Trump's pick for CFTC head on crypto regulation
FILE PHOTO: Signage is seen outside of the US Commodity Futures Trading Commission (CFTC) in Washington, D.C., U.S., August 30, 2020. REUTERS/Andrew Kelly/File Photo
U.S. senators on Wednesday pressed Michael Selig, President Donald Trump's nominee to lead the Commodity Futures Trading Commission, about his plans to overhaul cryptocurrency regulations and election betting, among other hot-button issues.
Selig is currently chief counsel for the Securities and Exchange Commission's crypto task force and an adviser to Trump's Republican SEC Chair Paul Atkins.
Appearing before the Senate Agriculture Committee, Selig advocated for "clear, simple guidelines" for cryptocurrency.
"This is a real opportunity to develop a framework that can allow for software developers to thrive, for new exchanges that are going to crop up that are going to protect investors ... and make sure that we have the right disclosure and requirements that we have typically in our financial markets," he said.
Trump courted crypto cash on the campaign trail with promises to be a "crypto president," and his administration has pushed industry-friendly policies, dropped probes into crypto firms, and signed into law a new regulatory framework for stablecoins, a type of cryptocurrency pegged to the U.S. dollar. Trump's family is building a crypto enterprise.
WHITE HOUSE WITHDREW PREVIOUS NOMINEE
The CFTC, which oversees commodity derivatives markets, would take a more active role overseeing the crypto industry if Congress passes a bill, dubbed the CLARITY Act, that includes proposed changes in crypto market supervision.
The White House withdrew its previous nominee for CFTC head, former Republican CFTC Commissioner Brian Quintenz, who said in September that influential crypto entrepreneurs Cameron and Tyler Winklevoss urged Trump to stall his nomination. The pair, who donated to Trump's campaign, have not commented on Quintenz's statement.
Selig, in a post on X after his nomination, said he would "help the President make the United States the Crypto Capital of the World." Prior to joining the SEC, Selig was a partner at law firm Willkie Farr & Gallagher, according to his LinkedIn page.
The CLARITY Act, passed by the House of Representatives in July and now under consideration in the Senate, would clear up a longstanding debate by defining when a cryptocurrency is considered a commodity versus a security. That would give the CFTC the authority to oversee crypto spot markets.
Lawmakers pressed Selig on whether the CFTC would need more funding and resources to adequately deal with the potential new authority should Congress pass such a bill. Selig declined to say, and maintained that it would "be irresponsible to prejudge that issue."
"I don't know why it's hard to say, 'We need more staff ... we need the investment,'" said Democratic Senator Ben Ray Luján. "This is a whole new space that we're building in the United States of America."
The CFTC is traditionally led by a bipartisan group of five commissioners nominated by the president. The agency currently has only one commissioner, Republican Caroline Pham, who is also serving as its acting chair. Pham has indicated she plans to depart the agency once Trump's nominee for chair is confirmed.
"We are excited to see Mike Selig's nomination for CFTC chairman moving so swiftly," said Cody Carbone, CEO of crypto trade group The Digital Chamber. "This is a great sign for the industry and the U.S. regulatory system, not only to have a digital asset expert leading the efforts at CFTC on a number of fronts, but specifically for informing ongoing market structure legislative debates."
