The era of regulation with the stick has come to an end?: The new CFTC chairman makes promising statements.
Mike Selig, newly appointed chairman of the U.S. Commodity Futures Trading Commission (CFTC), has announced a new "forward-thinking" regulatory initiative to protect and promote cryptocurrency markets.
Appointed by Donald Trump, CFTC chairman Mike Selig is ushering in a new era for the digital asset ecosystem. In his immediate statements, Selig has committed to making the United States a world leader in this field, freeing cryptocurrencies and financial technologies from oppressive regulations.
In social media posts and an article published in the Washington Post, Selig stated that he will end the era of "regulation through coercion." Emphasizing that the digital asset economy, now worth about 3 trillion dollars, is no longer a mystery, Selig declared that he will introduce specific rules to promote the development of innovative markets. This new approach specifically aims to support entrepreneurs who want to modernize traditional financial systems using blockchain technology.
Permanent regulations coming for cryptocurrency markets
The new chairman's agenda includes not only cryptocurrencies but also innovative financial instruments such as predictive markets and perpetual futures. Selig announced that he will establish an Advisory Committee for Innovation to guide him in this process. He also plans to strengthen the regulatory framework by including in his team Michael Passalacqua, an attorney experienced in the cryptocurrency sector.
Warning on competition for traditional finance
Selig's statements also serve as a warning for traditional financial institutions (TradFi). Stating that the new rules will give an advantage to new entrants in the sector, Selig aims to increase the competitiveness of U.S. markets.
