New CFTC Head Selig Promises Tailored Crypto Rules to Spur Innovation

TLDR

• Mike Selig has taken office as the new chairman of the U.S. Commodity Futures Trading Commission.
• He launched a rulemaking initiative that aims to future-proof regulation for digital assets and emerging financial technology.
• Selig stated that the new regulatory approach would ensure tailored rules for innovative firms entering U.S. financial markets.
• He emphasized that this strategy would help crypto markets grow within the U.S. under clear and fair regulatory guidelines.
• The CFTC chairman announced posts on the social media platform X and an op-ed in the Washington Post.

Mike Selig, the new head of the U.S. Commodity Futures Trading Commission (CFTC), has announced an initiative to establish rules that will “future-proof” the regulation of the crypto market. His plan signals a shift in how the agency will approach the oversight of emerging financial technologies. Selig’s announcement came shortly after taking office, promising tailored rules to support innovation while ensuring U.S. markets remain competitive.

A New Vision for Crypto Regulation

Mike Selig outlined his vision for a new regulatory approach to digital assets. He emphasized the importance of creating rules that are flexible and can adapt to future technological advancements. “In the days ahead, we will announce additional policy changes,” Selig stated in a social media post. This marks the beginning of a rule-writing campaign aimed at supporting the growth of crypto markets in the U.S.

Selig’s comments highlight his commitment to ensuring that innovation can thrive without unnecessary regulatory hurdles. He warned traditional financial institutions that they would need to compete with a new wave of entrants into the financial sector. These new players, he said, will benefit from tailored rules that foster innovation in areas like blockchain and digital assets.

CFTC Forms Committee to Guide Innovation

In his announcement, Selig mentioned the formation of an Innovation Advisory Committee. This committee will help guide the development of new policies for digital assets and other emerging financial technologies. The move is intended to bring together experts from various sectors to provide insights into the challenges and opportunities that new technologies present.

The Innovation Advisory Committee will be a key part of the CFTC’s efforts to ensure that its rules are forward-looking and able to accommodate the evolving financial landscape. Selig noted that the committee would help shape the agency’s approach to new markets, including prediction markets and perpetual futures. This approach aligns with his broader goal of ensuring that the U.S. remains a leader in the global financial landscape.

Selig Hires Crypto Lawyer Michael Passalacqua

To further strengthen his efforts, Selig has brought on Michael Passalacqua, a former crypto lawyer, to assist with the rulemaking process. Passalacqua has a background in digital assets, having worked at crypto exchange CrossTower and later at two major law firms specializing in crypto-related legal work. His expertise will play a crucial role as the CFTC navigates the complex world of digital asset regulation.

Selig’s hiring of Passalacqua underscores his commitment to bringing in experienced professionals who understand the nuances of the crypto industry. The CFTC is looking to make informed decisions that will support innovation while maintaining regulatory oversight.

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