New CFTC Chairman Michael Selig Once Called XRP ’A Code Like Gold or Whiskey’ – What It Means for Crypto

Washington's regulatory winds just shifted. The Commodity Futures Trading Commission (CFTC) has a new captain, and his past comments on digital assets are sending ripples through the crypto markets.

The 'Gold or Whiskey' Analogy

Before taking the helm, incoming Chairman Michael Selig made a striking comparison. He didn't frame XRP as a traditional security or a currency. Instead, he called it 'a code like gold or whiskey'—a commodity defined by its inherent properties and utility, not just its financial wrapper. That single phrase cuts to the heart of a years-long regulatory debate.

Regulatory Implications: A New Lens

This perspective could bypass the rigid securities-or-currency dichotomy that has tangled projects in legal red tape. Viewing certain tokens as digital commodities opens a different playbook—one the CFTC oversees. It suggests a framework where function, not just form, dictates the rules of the road. For an industry tired of guessing, that's a potential game-changer.

Market Sentiment & The Road Ahead

The appointment injects fresh uncertainty—and opportunity—into the regulatory landscape. Traders are parsing every past statement, while legal teams are undoubtedly revisiting their playbooks. A chairman who speaks in metaphors of commodities rather than securities hints at a more nuanced, and possibly favorable, approach for a significant swath of the crypto ecosystem. Of course, in the halls of power, today's philosophical musing can become tomorrow's cumbersome compliance rule—the ultimate finance jab where vision often gets a reality check.

The real test begins now. Will the 'code as commodity' view translate into clear policy, or remain just a clever turn of phrase? The market is watching, wallets at the ready.

The U.S. Senate has confirmed Michael Selig as the new chairman of the Commodity Futures Trading Commission (CFTC), putting a pro-crypto legal expert in charge of one of America’s most influential financial regulators. Selig was confirmed in a 53–43 vote, and his past comments on XRP are now drawing attention across the crypto world.

In 2023, after Judge Analisa Torres’ landmark ruling in the Ripple case, Selig publicly stated that XRP is “just code, like gold or whiskey.” He explained that while XRP can be sold in ways that involve securities laws, the token itself is not a security. This remark aligned closely with Ripple’s defense and the court’s interpretation, making Selig one of the important figures to publicly support XRP’s classification as a commodity.

Continue to hear commentators saying Judge Torres held that XRP is a security when sold to institutions and not a security when sold to retail. This is incorrect. Judge Torres held that XRP itself is not a security, but it can be sold as part of a security. /1

He further clarified that determining whether a crypto transaction implicates securities laws depends on the structure of specific deals, not the asset itself. “A commodity can be sold as part of an investment scheme, but that does not make the commodity itself a security,” Selig noted.

Selig’s leadership could mean:

• Less regulatory uncertainty for crypto in the U.S.
  
• Clearer commodity-based rules for digital assets
  
• A shift from aggressive enforcement toward guidance and oversight
  

His appointment comes amid a broader pro-crypto trend in Washington. Former acting CFTC chair Caroline Pham, also a crypto advocate, recently joined MoonPay to lead its legal and policy strategy, further signaling a more constructive regulatory environment.

While one appointment won’t instantly rewrite the rules, Selig’s confirmation sends a strong message. As Selig assumes leadership, the crypto community will monitor how U.S. regulation evolves—and whether other digital assets might see similar clarity under the CFTC.