CFTC and SEC Chairs Formulate Crypto Regulation 'Dream Team'

US Poised for Robust Crypto Regulation

The US is on the brink of establishing a comprehensive regulatory framework for digital assets, with the confirmation of Michael Selig as the new Chair of the Commodity Futures Trading Commission (CFTC). This move is seen as a crucial step, complementing Securities and Exchange Commission (SEC) Chair Paul Atkins, creating a 'dream team' for crypto regulation.

David Sacks emphasized in a recent post that the US is at a pivotal moment for crypto regulation, suggesting that Selig and Atkins are ideally positioned to set clear guidelines. Selig noted that Congress is nearing the completion of a crypto market structure bill, which is expected to solidify the US's position as a global leader in crypto innovation.

The market structure bill, known as the Responsible Financial Innovation Act, is currently under Senate consideration, building on the CLARITY Act passed by the House. However, its progress has been delayed due to the congressional holiday break. A Senate Banking Committee markup is anticipated in early January, which could lead to a floor vote.

Implications for SEC and CFTC

While the final text of the bill is pending, drafts indicate that it may grant the CFTC greater authority over digital assets, a domain previously under the SEC's jurisdiction. This shift has sparked debate, with some senators expressing concerns over DeFi's impact, potentially affecting the bill's progress.

Following Selig's confirmation, the Senate voted 53 to 43, and it remains unclear when he will assume his new role, replacing acting CFTC Chair Caroline Pham. Pham is expected to join the crypto firm MoonPay after her tenure.