Mike Selig: The Frontrunner for CFTC Chair Position
Insights from Washington reveal that the frontrunner for the chair of the Commodity Futures Trading Commission (CFTC) is a conspicuous figure from the cryptocurrency world – Mike Selig, the head of the Securities and Exchange Commission’s (SEC) cryptocurrency task force. This information was leaked through Politico and highlights the growing influence of the cryptocurrency industry in financial regulatory boards.
Selig’s Career Trajectory
Selig’s grooming in the financial sector has been extensive. He’s a seasoned veteran in cryptocurrency policymaking and he’s also had his taste of the workings of the CFTC during his time as a law clerk to ex-CFTC Chair Chris Giancarlo. Holding a partner position at Willkie Farr & Gallagher, a law firm, Selig consults on a variety of issues, including cryptocurrency regulation, enforcement, commodities, securities etc. It’s this broad legal expertise that makes him a favorite among the candidates for CFTC Chair.
Why the CFTC Chair Nomination is Significant?
The chair of the CFTC holds tremendous power, and their deep understanding of the cryptocurrency world and its intersection with commodity trading could shape the future of this rapidly developing area. This is especially the case in the light of the CLARITY Act, which treats most cryptocurrencies as commodities, hence positioning the chair of the CFTC to have significant influence over the future of crypto regulation.
With this shift, the longstanding tension between the CFTC and the SEC over cryptocurrency regulation may ease. To those outside of the financial regulation sphere, the classification of cryptocurrencies as either securities (regulated by the SEC) or commodities (under the jurisdiction of the CFTC) might seem like a small distinction. But these classifications have profound implications for the regulatory landscape that cryptocurrencies face. With Selig as chair, the SEC and the CFTC would no longer adhere to the Howey test, simplifying the context for cryptocurrency brands in the U.S.
Mike Selig: A Brief Background
Among Selig’s contributions to the cryptocurrency world are his stints as chief counsel of the SEC’s Crypto Task Force and the reversal of the controversial Staff Accounting Bulletin 121, thereby reprieveing numerous cryptocurrency companies from potential lawsuits. Since his early interest in cryptocurrencies that dates back to 2017, he’s been contributing to publications about them and has been seen in podcasts discussing the subject. Furthermore, Selig has taken a stand against the enforcement-heavy approach to crypto regulation that characterized the Gary Gensler era of the SEC.
The Contenders for the Chair Position
However, the fight for this influential position is not solely Selig’s. There are a number of serious contenders, including former commissioner Jill Sommers, former CFTC Market Participants Division Director Josh Sterling, Treasury Counselor and stablecoin policy expert Tyler Williams, and acting chair Caroline Pham. Each has their strengths and will no doubt make the competition fierce.
Caroline Pham, in particular, has proven her credibility by leading the CFTC in the midst of a staffing shortage. She moved the commission toward formal rulemaking and clear guidance, along with adopting a crypto-friendly stance by permitting offshore exchanges to interact with U.S. customers. Her tenure has also been marked by a close collaboration with the SEC.
Other notable contenders came and went. The Trump administration had previously put forth CFTC commissioner Brian Quintenz as their choice for the chair. However, opposition from Tyler Winklevoss and the Gemini exchange knocked him out of the race, backing a thesis that cryptocurrency giants might possess the power to shape regulatory bodies.
