The CFTC Chair Michael Selig called his chairmanship the beginning of what he calls a “golden age” for American financial markets as he takes over leadership of the U.S. Commodity Futures Trading Commission.
His remarks come as pressure intensifies on Washington to finally clarify how digital asset markets should be regulated.
Shortly after assuming office as chairman of the agency, Selig proclaimed a comprehensive plan to revamp the agency, the Future-Proof, which is a review to update decades-old CFTC regulations to more effectively reflect markets created by crypto, blockchain, and artificial intelligence.
Selig Outlines Plan to Update CFTC Rules for Blockchain and AI Trading
In an announcement of the initiative put out publicly, Selig stated that the CFTC needs to be in place to provide services to the markets of the future, and that the present-day period is a turning point in U.S. finance.
He elaborated that opinion in a Washington Post opinion piece, in which he claimed that technological changes were altering the way that financial products are produced, traded, and consumed, and that Congress was now near enacting long-awaited legislation on digital asset market structure.
He said that legislation would have a straightforward mandate on regulators and would bring sanity to an industry that has become a market worth over 3 trillion dollars.
The message by Selig is the opposite of the regulative policy of the past few years.
His criticism of the former administration was that they operated based on enforcement measures instead of explicit rules, and that digital assets and perpetual futures were shoehorned into the systems of traditional markets.
According to Selig, the strategy outsourced innovation and reduced the input of the common American.
Under his leadership, he claimed that the CFTC will work on custom-fit, purpose-specific rules that safeguard against fraud and manipulation without choking new products before they can grow.
The Future-Proof initiative will mean that CFTC staff will undergo a thorough review of the existing rules, most of which were originally agricultural futures market rules.
Selig said those rules may still work for traditional products, but do not account for blockchain-based trading venues, prediction markets, or AI-driven risk tools.
His stated goal is to modernize requirements in a way that creates a level playing field for incumbents and new entrants, while delivering what he described as the “minimum effective dose” of regulation.
Selig officially assumed the role on December 22 after being confirmed by the Senate on December 18, replacing acting chair Caroline Pham.