Michael Selig, President Donald Trump’s nominee to chair the Commodity Futures Trading Commission (CFTC), faced probing questions from the Senate Agriculture Committee during his confirmation hearing.
The session highlighted tensions around the agency’s role in regulating the burgeoning crypto market, especially as Congress advances major legislation to expand CFTC oversight.
Selig, currently chief counsel for the SEC’s crypto task force and a senior advisor to SEC Chair Paul Atkins, emphasized a balanced, innovation-friendly approach to digital assets while avoiding firm commitments on key concerns like funding and bipartisanship.
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The hearing comes at a critical juncture: The CFTC, with its 543 full-time staff compared to the SEC’s 4,200, is poised to gain primary authority over crypto spot markets under pending bills. Lawmakers expressed bipartisan support for clearer rules but voiced worries about the agency’s capacity and independence from executive influence.
Lawmakers focused on three main areas: agency independence, resource needs for crypto oversight, and preventing future crises like the 2022 FTX collapse. Sen. Elissa Slotkin (D-MI) warned that operating as the sole commissioner could make Selig “vulnerable to the pressure of the president,” urging commitments to bipartisan appointments.
She tied this to broader Trump administration efforts to remove Democrats from independent agencies, which is under Supreme Court review. Selig acknowledged valuing diverse viewpoints but deferred to the president on nominations, stating he would “honor such decisions.”
He avoided endorsing a specific number of Democratic commissioners. Sen. John Boozman (R-AR), the committee chair, pressed on regulating decentralized finance (DeFi) and spot trading for assets like Bitcoin and Ethereum. He advocated for “the CFTC, and only the CFTC” to handle digital commodities. Others asked about overhauling crypto rules and election betting markets.
Selig called crypto a “critical mission” for the CFTC, supporting a “cop on the beat” for investor protection in on-chain markets and DeFi. He advocated for frameworks that foster software developers and exchanges with proper disclosures, warning that unclear rules could drive firms overseas. He cautioned against an “enforcement-only approach.”
Funding and Resources
Multiple senators, including Democrats, repeatedly asked if the CFTC needs more funding to oversee the $4 trillion crypto market, especially with pending bills like the CLARITY Act. The draft bill proposes $150 million initially, shifting to fees later.
Selig declined to commit, calling it “premature” and saying he’d assess needs upon confirmation. He noted the agency’s recent staff reductions down ~20% but focused on internal efficiencies, like bolstering enforcement with specialized prosecutors.
Selig also addressed preventing another FTX-like scandal, stressing robust controls for exchanges and intermediaries. The hearing aligns with accelerating legislative efforts.
CLARITY Act: Would grant the CFTC exclusive jurisdiction over spot digital commodity trading (e.g., Bitcoin, Ethereum, Litecoin), requiring exchanges to register. It includes DeFi provisions targeting intermediaries rather than open-source code. The Senate Agriculture Committee is set to consider it soon, with optimism for passage before year-end despite a partial government shutdown.
Digital Asset Market Clarity Act (House-passed): Approved in July 2025 (294-137 bipartisan vote), it clarifies SEC vs. CFTC roles, covers stablecoins, custody, and DeFi. Senate reconciliation is ongoing. These bills stem from years of regulatory ambiguity, with the CFTC already handling crypto derivatives but seeking spot market authority.
If confirmed, Selig would replace Acting Chair Caroline Pham who plans to depart immediately, initially as the sole commissioner on the five-member panel. The committee scheduled a vote on his nomination for November 20, 2025, potentially fast-tracking him to the full Senate.
Crypto advocates, including The Digital Chamber’s CEO Cody Carbone, welcomed Selig’s nomination as “exciting” and pro-innovation. On X (formerly Twitter), reactions were positive but cautious. Posts highlighted Selig’s SEC experience and potential for “unified digital-asset oversight.”
Industry figures like David Sacks— White House AI/crypto czar praised him for modernizing regulation to keep the U.S. competitive. Some noted his pro-crypto stance could accelerate rulemaking on tokens and stablecoins.
Bitcoin and Ethereum saw modest gains post-hearing (~2-3%), reflecting optimism for regulatory clarity. However, critics worry about underfunding and politicization, with Democrats pushing for safeguards in the bills.
This development underscores Trump’s push to make the U.S. the “Crypto Capital of the World,” as Selig himself posted on X upon nomination. Confirmation could reshape crypto’s regulatory landscape by early 2026.