Senate to grill Trump’s pick for CFTC head on crypto regulation

By Hannah Lang

(Reuters) -U.S. senators are set on Wednesday to press 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. He is expected to appear before the Senate Agriculture Committee at 3 p.m. ET (2000 GMT). 

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.

Selig is expected to be questioned about that bill, as well as how the CFTC would work with the SEC and oversee markets that allow Americans to bet on the outcome of elections and other events. 

The CFTC is traditionally led by a bipartisan group of five commissioners nominated by the president. The agency currently only has 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.”

(Reporting by Hannah Lang in New York; Editing by Michelle Price, Edmund Klamann, Rod Nickel)

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