The U.S. Senate approved two cryptocurrency advocates for key regulatory positions. Mike Selig headed the Commodity Futures Trading Commission (CFTC), and Travis Hill took the position of head of the Federal Deposit Insurance Corporation (FDIC).
The Senate approved nominations as part of a package of nearly 100 nominees from the Trump administration for various government positions.
Seliga promises to make cryptocurrencies a priority
Seliga, who has experience working with the CFTC and the Securities and Exchange Commission (SEC), promised to make cryptocurrencies a priority back in October. It was at that time that he replaced the previous candidate Brian Quintenz.
Hill has already served as acting chair of the FDIC and has also shown a friendly position towards cryptocurrencies. At congressional hearings, he spoke against the practice of banks refusing to serve companies due to ties with cryptocurrencies.
The CFTC may soon gain more specific authority related to cryptocurrency companies. A bipartisan Senate bill introduced in November proposes to grant primary oversight of the cryptocurrency market to this commission. The FDIC is preparing to regulate stablecoin issuers and will influence the banking services for the crypto industry.
Long terms of office
Seliga's term will expire in April 2029. After taking the oath, he will replace acting chair of the CFTC Caroline Pham, who planned to leave her post after the new leader's confirmation and join the crypto infrastructure provider MoonPay.
Seliga will be the only commissioner on the CFTC, which typically has five members. Earlier this year, a series of resignations led to Pham being the only acting commissioner.
Hill will lead the agency for the next five years until 2030. Martin Gruenberg, the previously Senate-confirmed chair of the FDIC, resigned in January as part of the change in the administration of President Joe Biden.
The industry welcomes the appointments
The news of cryptocurrency supporters leading two major regulators has received a positive reaction in the industry.
Faryar Shirzad, the chief policy officer at cryptocurrency exchange Coinbase, wrote on social media X that Seliga's experience in the cryptocurrency space and as a federal regulator will ensure fair and clear governance of the American cryptocurrency market under the law.
Cody Carbone, head of the cryptocurrency advocacy group Digital Chamber, called Seliga's confirmation by the U.S. Senate an exciting new chapter, considering his track record as a commissioner and an attorney familiar with complex technical issues of digital assets.
AI Opinion
Analyzing historical patterns of regulatory course changes, it is noteworthy that such appointments often precede periods of legislative activity. In 2017-2018, the appointment of Jay Clayton as head of the SEC was also viewed as a signal to soften the approach, but in practice led to increased activity against ICOs.
From an institutional analysis perspective, the simultaneous appointment of cryptocurrency supporters to the CFTC and FDIC creates an unusual situation of regulatory consensus. However, the key factor remains the position of the Department of the Treasury and the future chair of the SEC, which historically have played a more active role in shaping crypto regulation. The question is whether this consistency can overcome the inter-agency contradictions that have long hindered the development of clear rules for digital assets.
