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 U.S. financial regulatory landscape has finally completed two of its most important pieces. The U.S. Senate officially confirmed Mike Selig as the chairman of the Commodity Futures Trading Commission (CFTC) with a vote of 53 to 43 on Thursday, and Travis Hill to lead the Federal Deposit Insurance Corporation (FDIC). Both are seen as key figures who hold a highly open and friendly stance towards Crypto Assets.

In the regulation of Crypto Assets, the CFTC is gradually being pushed to the forefront. If Congress ultimately completes legislation that clearly grants the CFTC more comprehensive regulatory authority over Crypto Assets, this agency, which originally focused on 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 interim period, paving the way for her successor. She has also stated that after stepping down, she will take on the role of Chief Legal Officer and Executive of the crypto assets infrastructure service provider MoonPay.

CFTC 'Bare Bones Commander' Challenge

It is worth noting that Mike Selig, during his previous tenure at the U.S. Securities and Exchange Commission (SEC), was deeply involved in the formulation of cryptocurrency policies. Now that he has taken over at the CFTC, he will continue the ongoing “Crypto Sprint” program, which is 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 a part of the legal language;
• Encourage compliant platforms to issue spot leveraged Crypto Assets products. Currently, Bitnomial exchange has taken the lead in submitting related applications.

However, Mike Selig will face a very unique dilemma upon taking office: he is the only remaining member of the 5 commissioners originally established by the CFTC. Since Caroline Pham has stated that she will resign immediately after the new chairman takes office, this means Mike Selig will be the sole member of the committee.

Although this allows him to push policies without resistance and with high efficiency, it may also lead to challenges regarding the legal legitimacy of new policies in the future due to the lack of checks and review 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 being reviewed by the Senate. Sources indicate that the Senate Banking Committee may complete critical review procedures as early as the end of the month.

FDIC New Policy: Saying Goodbye 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 shown 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 the House Financial Services Committee hearing on December 2. He was referring to the old regulation during the Biden administration, which required banks to obtain government approval before engaging in Crypto Assets activities. “Now, it is the banks' responsibility to manage safety and soundness risks, but they are not prohibited from serving these industries.”

In response to the long-standing criticism in the industry regarding the phenomenon of “Debanking,” where banks, under regulatory pressure, arbitrarily sever business ties with Crypto Assets companies and their executives, Travis Hill has played a key corrective role in this matter. Republican lawmakers and industry insiders generally believe that this phenomenon in the past was fueled by outdated regulatory policies.

Trump's regulatory puzzle is gradually taking shape, but the Federal Reserve remains a variable

The long-standing vacancies of the U.S. CFTC and FDIC chairpersons have been seen as the biggest gap in the Trump administration's regulation of Crypto Assets. Now, with the SEC, OCC, and Treasury Department leadership gradually in place, this puzzle is nearly complete. Regarding the Federal Reserve (Fed), Trump-nominated Vice Chair for Supervision Michelle Bowman took office in June, and only the successor to Chair Jerome Powell, whose term ends next year, remains undecided.

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Disclaimer: This article is intended to provide market information. All content and opinions are for reference only and do not constitute investment advice, nor do they represent the views and positions of Blockchain. Investors should make their own decisions and trades, and the author and Blockchain will not be responsible for any direct or indirect losses incurred by investors' trading. _

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