CFTC’s Selig Ends Regulation by Enforcement, Promises Rule-Based Oversight
- Mike Selig, the only commissioner of the CFTC, pledges to end “regulation by enforcement” and establish clear rules for crypto oversight.
- Selig has authority over crypto assets, derivatives, and a $36.6 billion prediction market, concentrating power typically divided among five commissioners.
- A finalized perpetual-futures rule could bring offshore crypto trading back to U.S.-regulated venues by 2026.
- The CFTC cleared the first U.S.-regulated crypto perpetual futures contract, boosting Hyperliquid’s HYPE token to nearly $67.
- Selig’s leadership has drawn praise from President Donald Trump for his approach to bitcoin and prediction markets.
Mike Selig’s leadership at the CFTC marks a significant shift in U.S. crypto policy towards rule-based oversight instead of regulation through enforcement actions. This move aims to provide clarity and stability in the market, potentially reversing the trend of American innovators moving abroad due to regulatory uncertainty.
By consolidating decision-making power within a single commissioner, Selig seeks to implement lasting regulatory frameworks before additional commissioners are appointed, which could alter the current balance of power within the agency.(Source)
