CFTC Faces DeFi Turning Point: Selig Advocates for Regulation that Encourages Innovation
- Michael Selig, Trump's CFTC nominee, defended innovation-friendly DeFi regulation during a Senate hearing, warning rigid rules could drive activity offshore. - CFTC faces leadership vacuum with only acting Chair Caroline Pham, raising bipartisan concerns over regulatory clarity and legal risks from unconfirmed vacancies. - Selig advocated tailored on-chain application regulation, aligning with Senate Republicans who argue CFTC alone should oversee digital commodities trading. - Congressional repeal of IR
During a Senate Agriculture Committee hearing on November 19, 2025, Michael Selig, President Donald Trump's pick to head the Commodity Futures Trading Commission (CFTC), defended his regulatory stance on decentralized finance (DeFi). The hearing, which centered on Selig's nomination for CFTC chair, showcased his commitment to fostering innovation while maintaining regulatory oversight in the swiftly changing digital asset sector. Selig, who currently serves as chief counsel for the SEC's crypto task force, cautioned that overly strict regulations could hinder innovation and push DeFi operations abroad, but also emphasized the importance of having effective oversight to protect market integrity
The session brought attention to bipartisan worries about the CFTC's current leadership gap, as acting Chair Caroline Pham has been the only commissioner since September. Senator Amy Klobuchar, the committee’s top Democrat,
In his testimony, Selig advocated for a more refined regulatory approach to DeFi, suggesting that rules should be designed for specific on-chain applications rather than applying broad, uniform standards.
The hearing also highlighted the tension between regulatory goals and practical limitations. Although the CFTC is responsible for supervising crypto markets, Selig did not commit to increasing the agency’s staff, even after a 20% workforce reduction as part of Trump’s broader federal cuts. "I would need to evaluate the situation once I’m in the role," he responded,
Outside the CFTC, the regulatory environment for DeFi continues to
If Selig is confirmed by the full Senate, he could significantly influence how the CFTC approaches DeFi. His preference for regulation that supports innovation stands in contrast to the SEC’s stricter enforcement under Chair Gary Gensler. Under Selig’s leadership, the CFTC may focus on providing regulatory clarity for market participants while avoiding measures that could hinder DeFi growth in the United States.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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