Trump’s CFTC pick Michael Selig heads for a Senate vote as the agency scraps “actual delivery” rules, greenlights spot crypto on futures bourses, and tests RWA collateral.
Summary
- Michael Selig, Trump’s nominee to lead the CFTC, faces a full Senate vote after a narrow committee approval, promising to make the U.S. “Crypto Capital of the World.”
- The CFTC scrapped its 2020 “actual delivery” guidance, folded Bitcoin, Ethereum, and others back into a tech‑neutral regime, and allowed spot crypto trading on long‑regulated futures venues.
- A new pilot lets Bitcoin, Ether, USDC, and tokenized Treasuries serve as collateral under tight reporting, while the agency struggles with a hollowed‑out commission and pending reauthorization.
Michael Selig, President Donald Trump’s nominee to lead the Commodity Futures Trading Commission, is scheduled to face a full Senate confirmation vote as early as this afternoon following a 12-11 party-line committee approval last month, according to congressional sources.
CFTC top pick on RWAs
The vote arrives as the CFTC prepares to assume expanded authority over digital asset markets while operating with only one seated commissioner since September, creating what observers have described as severe leadership constraints.
Selig’s confirmation hearing in November drew questions from senators regarding whether the agency’s 543 employees can manage expanded crypto oversight responsibilities that Congress is preparing to assign through pending legislation, including the CLARITY Act, according to hearing transcripts.
The nominee, currently chief counsel for the SEC’s Crypto Task Force, stated during his hearing that he would work to help make America “the Crypto Capital of the World” while building regulatory structures that support developer innovation and enforce traditional market safeguards on new exchanges.
Acting Chair Caroline Pham announced Tuesday that the agency is withdrawing its 2020 “actual delivery” guidance for virtual currencies, eliminating compliance requirements that included a 28-day asset possession standard. The framework had classified digital assets as a separate regulatory category from traditional commodities.
The withdrawal allows Bitcoin (BTC), Ethereum (ETH), and other digital assets to fall under the CFTC’s general technology-neutral framework, reducing compliance requirements for exchanges seeking to list new products, according to the agency’s statement.
The change follows the agency’s recent authorization of spot crypto trading on federally regulated futures exchanges for the first time, bringing direct buying and selling of digital assets onto platforms that have operated under federal standards for nearly a century.
The CFTC is advancing its Crypto Sprint initiative through a December 8 pilot program authorizing Bitcoin, Ether, and USDC as collateral in derivatives markets, according to agency documents. The three-month program requires futures commission merchants to submit weekly reports on holdings, providing regulators with real-time visibility into the performance of tokenized assets under supervised conditions.
The agency also issued guidance stating that tokenized real-world assets, such as U.S. Treasuries and money market funds, can be evaluated within existing regulatory frameworks. It granted no-action relief for firms seeking to accept certain non-securities digital assets as customer margin, addressing custody, segregation, valuation, and operational risks.
Selig’s nomination follows Trump’s withdrawal of his initial pick, former CFTC Commissioner Brian Quintenz, whose candidacy ended in September amid opposition from Gemini co-founders Tyler and Cameron Winklevoss, according to published reports.
The White House vetted several alternatives, including former CFTC official Josh Sterling and Treasury counselor Tyler Williams, before selecting Selig, who previously advised blockchain clients in private practice and worked on digital asset policy under former CFTC Chair J. Christopher Giancarlo, according to sources familiar with the matter.
The agency has operated with reduced leadership since January, when Chair Rostin Behnam resigned after overseeing major enforcement actions, including the $4.3 billion Binance settlement. Commissioner Kristin Johnson departed in September, while Caroline Pham announced plans to join MoonPay once a successor is confirmed, leaving the five-seat commission with minimal staffing.
The leadership gap has slowed policy coordination with Congress on legislation that would grant the CFTC primary oversight of spot crypto markets under frameworks outlined in the President’s Working Group on Digital Asset Markets report, according to regulatory analysts.
House Agriculture Committee Chairman Glenn Thompson told lawmakers he anticipates the Senate’s confirmation vote and plans to invite Selig early next year to discuss his agenda for the agency’s first reauthorization in over a decade, according to a committee statement.
