The crypto sector will have a clear friend at the head of a major financial regulator in the United States. Michael Selig has been officially appointed chairman of the Commodity Futures Trading Commission (CFTC), a body that is taking an increasingly important role in the regulation of crypto in the United States.
The appointment comes at a time when work is being done in Washington on new legislation that should partly shift power over crypto markets to the CFTC. With Selig, the regulator now has a permanent and outspoken pro-crypto leader.
CFTC is moving towards the crypto center
The US Senate approved Selig’s nomination on Thursday. That happened with 53 votes in favor and 43 against. He is the candidate of President Donald Trump, who put him forward last year after a difficult previous nomination procedure.
Trump’s previous choice, Brian Quintenz of investment fund a16z, encountered strong criticism from the sector. Gemini founders Tyler and Cameron Winklevoss, among others, expressed concerns about possible conflicts of interest. Ultimately, that nomination was withdrawn.
The CFTC is on the eve of a major expansion of power. There are bills in both the House of Representatives and the Senate that give the regulator explicit powers over large parts of the crypto market, including spot trading.
The supervisor is already anticipating this. Earlier this month, the CFTC approved the first regulated platform to offer spot crypto products. This took place within the existing rules, in anticipation of legislation that would determine the role of the CFTC.
That legislation is known as the Clarity Act. The bill should finally determine which cryptocurrencies fall under the CFTC and which fall under the Securities and Exchange Commission (SEC). In particular, cryptos that are not securities, such as bitcoin, would be explicitly placed with the CFTC. According to White House crypto advisor David Sacks, the Senate committee will discuss the proposal substantively next month.
This shift in power is related to the so-called Clarity Act. That bill must determine which crypto coins fall under the CFTC and which fall under the SEC. This gives the CFTC a central role in the supervision of large parts of the crypto market.
David Sacks, crypto advisor to the White House, has now confirmed that the Senate committee will discuss the substance of the proposal next month. This brings the law, which has already been adopted by the House of Representatives, one step closer.
Selig brings crypto experience
Selig has already made his mark in the crypto dossier. He worked at the SEC as chief counsel of the Crypto Task Force and later was a partner at law firm Willkie Farr & Gallagher, where he focused on crypto and the underlying blockchain technology.
During his hearing, Selig emphasized that the sector needs clear rules. At the same time, he warned against overregulation that could slow down innovation and software development.
Source: https://newsbit.nl/crypto-krijgt-invloedrijke-bondgenoot-aan-de-top-van-amerikaanse-waakhond/
