Michael S. Selig officially takes over the CFTC, declaring the end of the “enforcement is regulation” era, laying down new rules for the U.S. crypto market. (Previously: The U.S. CFTC announced the approval of BTC, ETH, and USDC as margin and collateral for derivative contracts) (Background: The U.S. CFTC: Federal-level “spot crypto market” officially launched, Bitcoin and Ethereum will trade alongside gold.)

Table of Contents

• From legal clerks to regulatory hubs
• Core Policy: Principle-Oriented and Legislative Acceleration
• Power vacuum and rapid case window
• The regulatory turning point that the market is anticipating.

Washington is shrouded in cold winds, but a rare warmth permeates the CFTC headquarters on December 22. Michael S. Selig raised his right hand in front of everyone and received the seal of the 16th Chairman, ending an eight-week vacancy. Nominated by Trump on October 27 and confirmed by the Senate on December 18, his appointment is seen as a key piece of the White House's strategy to “keep innovation in the United States.”

From legal clerk to regulatory hub

Selig's resume spans the private sector and government core. In 2014, he served as a legal clerk under then-CFTC Commissioner J. Christopher Giancarlo, closely observing the offensive and defensive strategies of the “Crypto Dad” initiative for technology-friendly regulation. After leaving public office, he became a partner at a multinational law firm, specializing in compliance for derivatives, securities, and digital assets, assisting exchanges and wallet providers in resolving audit disputes. After returning to the government, he served as Chief Legal Counsel for the SEC cryptocurrency working group and as a senior advisor to Chairman Paul S. Atkins, and his experience across the two major agencies has led to expectations that the long-standing differences between the SEC and CFTC will enter a period of coordination.

Core Policy: Principle-Oriented and Legislative Acceleration

In his inaugural speech, he emphasized the farewell to the “enforcement as regulation” model, opting for a “principle-based” framework, and cited the collapsed exchange FTX as a cautionary example, reiterating that the safety of customer assets is the bottom line. He declared:

“When it comes to the golden age of the American financial market, no institution is better suited than the CFTC to pave the way with common-sense road rules. We must ensure that tomorrow's innovations are 'Made in America.'”

To implement the blueprint, Selig expressed full support for the passage of the digital asset market structure bill CLARITY Act in Congress, granting the CFTC primary regulatory authority over the digital commodity spot market. The regulatory agency will complete the blockchain rule-making by August 2026 and initiate a pilot program for tokenized collateral. To alleviate compliance burdens, he plans to simplify the approval process for designated contract markets (DCM) and derivatives clearing organizations (DCO), and restore the qualified eligible participant exemption (QEP Exemption). This move has received public praise from the Investment Company Institute (ICI).

Power Vacuum and Rapid Case Window

Currently, several committee seats are vacant due to resignations or term expirations, and Selig has become the only formal committee member to complete the confirmation process. In the short term, he possesses unprecedented decision-making efficiency, able to promote drafts and lock in budgets before new members are in place, setting the pace for comprehensive legalization in 2026. While registration trivialities are eased, fraud, manipulation, and misappropriation of client funds remain top priorities for enforcement; he promises to focus “inwardly,” targeting major violations rather than stacking fines.

The regulatory turning point that the market is anticipating

The departure of Selig symbolizes a shift in the U.S. regulatory philosophy from defense to competition. For investors and the industry, this is not just a personnel change, but more like the phenomenon of ice breaking at the end of winter— the ice is still there, but the water flow has already loosened. In the next 18 months, how the CFTC implements the provisions of the CLARITY Act, pilot programs, and simplified procedures into concrete rules will determine whether the U.S. can maintain its lead in the global digital finance landscape. The winds in Washington are still cold, and the market is holding its breath waiting for the next hammer strike from this “regulatory architect.”