CFTC’s New Chairman Michael Selig Vows to End Crypto ’Regulation by Enforcement’ Era

The crypto industry just got its clearest regulatory signal yet—and it's flashing green.

From Legal Ambush to Legal Clarity

Michael Selig, the freshly appointed chairman of the Commodity Futures Trading Commission (CFTC), is drawing a line in the sand. His first major pledge? To stop governing the digital asset space through lawsuits and surprise enforcement actions. For years, companies have operated in a fog, often learning the rules only after being penalized for breaking them. Selig's approach promises to lift that fog, shifting the paradigm from punitive to prescriptive.

Building a Framework, Not Just Fines

This isn't about going soft. It's about building a stable framework where innovation isn't stifled by regulatory uncertainty. The goal is to establish clear, forward-looking guidelines for trading, custody, and disclosures—rules of the road written before the traffic starts, not after the crash. Expect formal rulemaking processes to take center stage, replacing the legal guessing games that have left even Wall Street veterans scratching their heads. It’s the regulatory equivalent of swapping a minefield for a marked highway.

The New Cop on the Beat

Selig's background suggests he means business. With deep experience in both traditional finance and crypto law, he understands the complexities of derivatives and digital assets. His appointment signals a move toward specialized oversight, potentially clarifying the long-running turf war with the SEC over what constitutes a security versus a commodity. For crypto markets, this could mean more legitimate derivatives products, clearer custody solutions, and a path for institutional capital that doesn't involve glancing over its shoulder.

A Cynical Take from the Trading Floor

Of course, on Wall Street, they’re already placing bets on how long the 'kinder, gentler' regulator lasts before the first major blow-up forces a return to form. Because in finance, every new rule is just a challenge to find a more profitable loophole.

The era of regulation by enforcement is closing. A new chapter of defined rules and deliberate oversight is beginning. For an industry craving legitimacy, this isn't just news—it's a foundation.

TLDR

• Michael Selig was sworn in as the 16th chairman of the CFTC on Monday, December 23, 2025, after a 53-43 Senate confirmation vote
• Caroline Pham departed the CFTC after serving as acting chair since January 2025 and is joining crypto company MoonPay
• Selig’s term runs until April 2029 and he previously served as chief counsel of the SEC’s Crypto Task Force
• Congress is working on digital asset market structure legislation that could expand the CFTC’s authority over cryptocurrency regulation
• White House crypto czar David Sacks called Selig and SEC chair Paul Atkins a “dream team” for creating clear regulatory guidelines

The Commodity Futures Trading Commission has new leadership. Michael Selig was sworn in as the agency’s 16th chairman on Monday after the Senate confirmed him in a 53-43 vote last Thursday.

Selig’s appointment comes after President Donald TRUMP nominated him on October 27, 2025. His term will run until April 2029.

I am thrilled to welcome @MichaelSelig as the 16th Chairman of the @CFTC. His pragmatic, common sense approach will ensure the CFTC strikes the right balance of innovation and market integrity. It has been the honor of a lifetime to lead the CFTC during such a historic moment for… pic.twitter.com/Gmprmxrgd6

— Caroline D. Pham (@CarolineDPham) December 22, 2025

Caroline Pham announced Monday WOULD be her last day at the CFTC. She had served as acting chair since January 2025 and became the agency’s sole commissioner in August.

MoonPay confirmed reports that Pham is joining the crypto fintech company. She had previously stated she would leave once Congress confirmed a permanent chair.

Background on Selig’s Crypto Experience

Selig brings crypto-focused experience to the role. He previously worked as chief counsel of the Securities and Exchange Commission’s Crypto Task Force.

The new chairman has promised to avoid “regulation by enforcement” tactics. He aims to support growth in blockchain and crypto technologies.

Selig stated he is grateful for President Trump’s confidence in him. He described this as a pivotal time for the agency.

The chairman noted retail participation in commodity markets is at all-time highs. He also pointed to emerging technologies and platforms entering the market.

Selig mentioned Congress is preparing digital asset market structure legislation. He said this would cement the US as the “Crypto Capital of the World.”

White House crypto czar David Sacks praised the leadership pairing. He called Selig and SEC chair Paul Atkins a “dream team” for defining clear regulatory guidelines.

Legislative Progress on Crypto Regulation

Congress is reviewing a bill to clarify cryptocurrency market rules. The legislation is known as the Responsible Finance Innovation Act in the Senate.

The House passed the CLARITY Act in July as a related measure. Work on the Senate version paused during the congressional recess.

The bill would create a framework for digital asset regulation. It aims to clarify the roles of both the SEC and CFTC.

The legislation addresses emerging technologies and DeFi platforms. Preliminary versions suggest the CFTC would gain more authority over digital assets.

The Senate Banking Committee plans to hold discussions in early January. This could lead to a floor vote on the legislation.

Some Republican leaders have expressed support for moving forward. Other senators have raised concerns about DeFi provisions that could delay progress.

Pham said during her tenure the CFTC refocused on promoting responsible innovation. She stated the agency prepared to take on expanded oversight of digital assets and prediction markets.

Selig now serves as the CFTC’s sole commissioner. Pham welcomed his pragmatic approach to balancing innovation and market integrity.