Prospective CFTC chair addresses DeFi regulation at nomination hearing

Michael Selig, nominated to chair the Commodity Futures Trading Commission (CFTC), emphasized the need for regulatory clarity in digital asset markets during his Senate confirmation hearing. Selig, currently the chief counsel for the crypto task force at the SEC, warned against a regulation-by-enforcement approach, arguing it risks pushing companies offshore. He acknowledged the rapidly evolving landscape of financial markets with new technologies and platforms. Under questioning from Senator John Boozman, Selig reaffirmed that the CFTC should take the lead in regulating digital commodities, noting that decentralized finance (DeFi) requires careful scrutiny—highlighting the significance of both on-chain applications and the roles of intermediaries. The Senate Agriculture Committee is expected to review his nomination, following the removal of his initial pick, Brian Quintenz. Selig's responses indicate a balanced approach to fostering innovation while ensuring oversight in the burgeoning crypto market.

Source 🔗