US Senate Confirms Crypto-Friendly Leadership for CFTC and FDIC

Reshuffling of Key Regulatory Agencies

The US Senate confirmed on Thursday the nominations of Mike Selig as the new Chairman of the Commodity Futures Trading Commission (CFTC) and Travis Hill as Chairman of the Federal Deposit Insurance Corporation (FDIC) ^[1]. Both appointments were part of a comprehensive personnel package with nearly 100 nominations from the Trump administration, which passed with a vote of 53 to 43 ^[1].

The confirmations mark a shift in direction for US crypto regulation and are viewed by the industry as a signal for more structured regulatory treatment of digital assets.

Mike Selig Takes Over CFTC Leadership

Selig has professional experience at both the CFTC and the Securities and Exchange Commission (SEC) ^[1]. Most recently, he worked on Digital Asset Policy at the SEC ^[2]. Upon his nomination in October, he announced plans to place digital assets higher on the agency's agenda ^[1].

He succeeds interim chair Caroline Pham, who had already announced her departure ^[1]. Pham, who played a key role in shaping US crypto policy this year, will join crypto payment company MoonPay after Selig's swearing-in ^[2]. On platform X, she wrote: "I'm looking forward to a successful confirmation of Mike Selig as the CFTC's next chairman and a smooth transition once he is sworn in. The future is bright. Onward and upward" ^[2].

Selig will become the sole commissioner of the CFTC after the agency's five-member commission has shrunk to just one person ^[2]. This allows him to steer the regulatory authority's policy decisions more directly, though it raises questions regarding due process ^[2]. His term runs until April 2029 ^[1].

Travis Hill and the Role of the FDIC

Travis Hill, who had been leading the FDIC in an acting capacity, has shown openness toward crypto companies in the past ^[1]. In congressional hearings, he criticized cases of alleged account terminations at crypto-related firms ^[1].

At a hearing on December 2 before the House Financial Services Committee, Hill said the agency had "reversed the policies of recent years" ^[2]. This refers to the crypto-critical policy during the Biden administration, which according to many in the digital asset industry made it difficult for crypto firms to operate ^[2]. A central issue was the so-called "debanking" of crypto companies, often referred to as Operation Chokepoint 2.0 ^[2].

"Banks are expected to manage the safety and soundness risk, but otherwise have no prohibitions to serving those industries," Hill explained during the hearing ^[2]. He emphasized that banks have "no prohibitions" on serving crypto firms as long as safety and soundness risks are properly managed ^[2]. Hill has also taken a leading role in addressing complaints about debanking ^[2].

Under his leadership, the FDIC is expected to play a significant role in supervising stablecoin issuers and their integration into the traditional banking system ^[1]. His term runs until 2030 ^[1].

Possible Expansion of CFTC Authority

A possible expansion of authority is emerging for the CFTC ^[1]. A bipartisan bill from November proposes granting the agency more clearly defined supervisory powers over crypto asset trading ^[1].

Positive Reactions from the Industry

Reactions from the industry were predominantly positive ^[1]. Faryar Shirzad, Chief Policy Officer at Coinbase, stated on X that Selig's experience as a regulator and his expertise in crypto could contribute to "fairness and clarity" in the US crypto market ^[1]. In his tweet, he congratulated: "Congratulations Mike Selig on your confirmation to lead CFTC. Mike is exceptionally well-suited for the role. His experience in crypto and as a federal regulator will ensure that America's crypto market is governed with fairness, clarity and an abiding commitment to the law" ^[1].

The appointments are seen as a signal that crypto issues are likely to be more structurally regulated in the coming years ^[1]. The confirmations of Selig and Hill come after Trump installed new leadership at the SEC, the Office of the Comptroller of the Currency, and the US Treasury Department ^[2].