CFTC’s Expanded Crypto Responsibilities Challenge Regulatory Preparedness and Cross-Party Cooperation

On Thursday, lawmakers advanced President Donald Trump’s pick, Michael Selig, to head the Commodity Futures Trading Commission (CFTC), moving his nomination to the full Senate for a final decision. The Senate Agriculture Committee approved Selig in a narrow 12–11 vote along party lines after a heated hearing where members questioned the agency’s preparedness for overseeing the fast-changing crypto sector

. Traditionally focused on derivatives and futures, the CFTC now finds itself at the forefront of legislative efforts to expand its oversight to digital assets and prediction markets .

Selig, who currently serves as chief counsel for the SEC’s crypto task force and as a senior advisor to SEC Chair Paul Atkins, has played a central role in shaping Trump’s pro-crypto policies. If confirmed, he would strengthen the CFTC’s authority over crypto spot markets under the CLARITY Act—a bipartisan measure passed by the House in July that classifies cryptocurrencies as commodities. The bill, now before the Senate, would also broaden the CFTC’s reach to include prediction markets such as Kalshi and Crypto.com, both of which have faced legal challenges from state gambling authorities

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During the hearing, Democrats voiced concerns about the CFTC’s leadership and resources. The agency currently has only one commissioner, acting Chair Caroline Pham, who is expected to step down if Selig is confirmed. With four commissioner seats still vacant,

has not yet put forward additional nominees, raising doubts about maintaining bipartisan representation. Sen. Elissa Slotkin (D-MI) stressed the importance of “oversight” to ensure the CFTC does not become a “vulnerable” single-party body. Selig, for his part, with only one chair and promised to collaborate with a range of perspectives if confirmed.

Selig is set to succeed Brian Quintenz, a former CFTC commissioner whose nomination was withdrawn following criticism from notable crypto advocates, including the Winklevoss twins. Selig’s previous work at the SEC and his push for aligning crypto regulations between agencies have made him a pivotal figure in inter-agency cooperation

. If confirmed, he will guide the CFTC as it becomes a primary regulator in a sector by 2026.

The CFTC’s move into crypto oversight has attracted both industry backing and regulatory attention. Selig, who has connections to companies like eToro and Paradigm,

to safeguard investors while encouraging innovation. Still, he stopped short of promising more staff or funding for the agency, which currently employs 543 people compared to the SEC’s 4,200 . Sen. Ben Ray Lujan (D-NM) questioned whether the CFTC could handle the complexities of the crypto market with its present resources, noting that Trump’s crypto-friendly agenda might demand a “robust” regulatory system.

The outcome of Selig’s confirmation remains unclear. While there is bipartisan agreement on expanding the CFTC’s role, Democrats are expected to closely examine the agency’s independence and funding during the Senate’s final vote. Selig’s views on decentralization and prediction markets, including platforms like Kalshi and Crypto.com, may also influence the discussion

. With a Senate decision anticipated soon, the future structure and regulatory approach of the CFTC will have a lasting impact on the cryptocurrency industry.