coindesk.com
Mike Selig, the new head of the U.S. Commodity Futures Trading Commission that is expected to be a leading regulator of the crypto markets, promised a rule-writing campaign that will "future-proof" oversight of innovative financial technology.
Though Selig's Tuesday announcement of "a new course" was light on specific rules he'll pursue, President Donald Trump's newly sworn-in chairman at the CFTC charged ahead with a sentiment that seems to warn traditional financial firms that they'll have to compete with a new array of entrants into U.S. finance that'll be granted tailored rules.
"In the days ahead, we will announce additional policy changes," Selig wrote in a series of posts on social media site X to usher in his initiative, alongside an opinion piece he published in the Washington Post. His approach — on the heels of another year-long pro-crypto campaign run by former Acting Chairman Caroline Pham — is designed to shield new policy "against rogue regulators."
"We will end regulation by enforcement and ensure new markets flourish at home with tailored rules that keep American markets the best in the world," he said, noting that the "digital asset economy has grown from a mere curiosity to a $3 trillion market."
Selig, who said his other new initiative to form an Innovation Advisory Committee will help steer the work, referenced other areas of financial innovation, too, citing prediction markets and perpetual futures.
"The same spirit that drove American farmers to cultivate the Great Plains is inspiring today’s innovators to leave tradfi and conquer unexplored territories," Selig said. "They are leveraging technologies like blockchain to modernize legacy financial systems and build entirely new ones."
Though he didn't address the ongoing work in the U.S. Congress to establish new crypto law that would permanently govern that area of policy, he mentioned the labor-intensive process of official rulemaking that future leaders of the agency from another party wouldn't be able to easily erase — as Trump's regulatory allies have erased earlier, less-formal guidance from Biden-era federal agencies.
The agency also announced today that Selig had hired an outside crypto lawyer, Michael Passalacqua, to help the effort. Passalacqua started his legal career working at crypto exchange CrossTower, which ceased operations a few years ago, then did digital-assets-focused work at two prominent law firms.
When Trump had struggled to get a CFTC leader confirmed by the Senate last year and abandoned his first pick, former Commissioner Brian Quintenz, Pham ran the agency during the first year of his administration. Crypto policy was a focus for Pham, who left the agency last month to join crypto firm MoonPay, and she started a number of initiatives, including a close cooperation with the Securities and Exchange Commission on pursuing complimentary digital assets rules.