Senate Confirms Mike Selig and Travis Hill to Lead CFTC and FDIC, Signaling Crypto-Friendly Regulatory Approach
The Senate has confirmed Mike Selig as chair of the Commodity Futures Trading Commission (CFTC) and Travis Hill as chair of the Federal Deposit Insurance Corporation (FDIC) in a package of nominations, with the vote tallying 53-43.
Selig replaces Acting Chair Caroline Pham at the CFTC, who is reportedly set to join MoonPay as chief legal officer and chief administrative officer following her departure. With Pham's exit, the CFTC's five-member commission had shrunk to a single member, potentially easing swift policy actions but raising legal vulnerability to challenges.
Selig brings experience in crypto policy from his time at the Securities and Exchange Commission (SEC). The CFTC's crypto agenda under his leadership includes accelerating efforts to incorporate stablecoins as tokenized collateral and embedding blockchain-specific language into regulatory rules. Additionally, the agency is considering the regulation of spot-leveraged crypto products on authorized trading platforms.
Congress is engaged in advancing major legislation to grant the CFTC explicit authority over a broader scope of crypto activities. The House has passed the bill, and Senate negotiations are ongoing, with a markup hearing possible soon. The Senate attached 97 confirmation questions to the nomination resolution in connection with these discussions.
Meanwhile, Travis Hill, who served previously as acting FDIC chair, has advocated for a crypto-friendly banking approach. He argues that banks can safely serve crypto industries if they effectively manage safety and soundness risks. Hill has also addressed concerns regarding the 'debanking' phenomenon impacting the crypto sector.
The FDIC's responsibilities include regulating stablecoin issuers and guiding how the crypto industry accesses banking services. Under Hill's leadership, the FDIC is expected to pursue policies aimed at improving banking access for crypto businesses and mitigating 'debanking' issues.
