Trump's "Crypto Assets Friendly" team assembles! Senate approves CFTC and FDIC chair appointments.

As Trump enters a critical phase of his second term, the landscape of financial regulation in the United States has finally filled in two of its most important pieces. The U.S. Senate on Thursday officially approved Mike Selig to serve as chairman of the Commodity Futures Trading Commission (CFTC), and Travis Hill to head the Federal Deposit Insurance Corporation (FDIC), both of whom are seen as key figures with a highly open and friendly stance towards Crypto Assets.

In the regulatory division of crypto assets, the CFTC is gradually being pushed to center stage. If Congress ultimately completes legislation that clearly grants the CFTC more comprehensive regulatory authority over crypto assets, this agency, originally responsible for futures and derivatives, will become the most influential regulatory authority in the U.S. cryptocurrency market.

After taking office, Mike Selig will succeed acting chair Caroline Pham, who has actively promoted several “crypto assets industry-friendly” policy directions during her tenure, paving the way for her successor. She has also stated that after stepping down, she will serve as the Chief Legal Officer and Executive at the crypto assets infrastructure service provider MoonPay.

CFTC 'Bare Bones Commander' Challenge

It is worth noting that during his previous tenure at the SEC, Mike Selig was deeply involved in the formulation of encryption policies. Now, after taking over the CFTC, he will continue the ongoing “Crypto Sprint” program, expected to promote the following changes:

• Promote the inclusion of stablecoins into the category of “tokenized collateral”;
• Begin revising regulations to formally incorporate blockchain technology into regulatory texts, making it part of the legal language;
• Encourage compliant platforms to issue spot leveraged crypto assets products, and Bitnomial Exchange has taken the lead in submitting relevant applications.

However, Mike Selig will face a very unique dilemma after taking office: only he remains of the 5 original CFTC commissioners. Since Caroline Pham has stated she will resign immediately after the new chair takes office, this means Mike Selig will be the only member of the committee.

Although this allows him to promote policies with no resistance and high efficiency, it may also lead to challenges regarding the legal legitimacy of new policies in the future due to the lack of internal checks and deliberative processes within the committee.

In addition, Congress is accelerating legislation to grant the CFTC broader regulatory authority over crypto assets spot trading. The House has already passed related bills this year, and they are currently under review by the Senate. According to sources, the Senate Banking Committee may complete key review procedures by the end of the month at the earliest.

FDIC New Policy: Bidding Farewell to the Shadow of 'De-Banking'

As for the FDIC, the agency not only regulates stablecoin issuers but also holds the key to whether the Crypto Assets industry can access banking services. Travis Hill has previously demonstrated a distinct friendly attitude while serving as acting chairman of the FDIC.

“We have overturned the policies of the past few years,” Travis Hill said at a hearing of the House Financial Services Committee on December 2. He was referring to the old regulations during the Biden administration, which required banks to obtain government approval before engaging in crypto assets business. “Now, it is the banks' responsibility to manage safety and soundness risks, but they are not prohibited from servicing these industries.”

In response to the long-standing criticism in the industry regarding the phenomenon of “Debanking,” which refers to banks arbitrarily severing business ties with cryptocurrency companies and their executives under regulatory pressure, Travis Hill has played a key corrective role in this area. Republican lawmakers and industry insiders generally believe that this phenomenon in the past was indeed exacerbated by outdated regulatory policies.

Trump regulation puzzle gradually in place, the Federal Reserve remains a variable

The long vacancy of the chairpersons of the CFTC and FDIC in the United States has been seen as the biggest gap in the Trump administration's regulation of Crypto Assets. Now, with the SEC, the Office of the Comptroller of the Currency (OCC), and senior officials from the Treasury Department gradually in place, this puzzle is nearly complete. Regarding the Federal Reserve (Fed), the regulatory vice-chairman nominated by Trump, Michelle Bowman, has taken office in June, and the only remaining position yet to be determined is the successor to Chairman Jerome Powell, whose term expires next year.

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Tags: CFTCDonald TrumpFDICMike SeligTravis HillChairman appointed Crypto Assets Trump regulation US Commodity Futures Trading Commission Federal Deposit Insurance Corporation Finance