CFTC’s Selig Says U.S. Now Leads Global Crypto Market

TLDR

• Michael Selig said the United States is now the crypto capital of the world during the FIA conference.
• He announced a joint Project Crypto Initiative with the SEC to create a clear regulatory framework.
• The initiative aims to establish a defined crypto asset taxonomy for market participants.
• Selig directed staff to draft guidance for non-custodial wallet and DeFi software developers.
• The CFTC is reviewing rules for leveraged and margined retail crypto transactions.

U.S. Commodity Futures Trading Commission Chair Michael Selig declared that America now leads the global crypto market. He outlined coordinated regulatory plans during a speech at the FIA annual conference in Boca Raton. He said regulators will deliver clear rules for digital assets after years of enforcement-driven oversight.

Michael Selig Outlines Joint Crypto Framework with SEC

Michael Selig addressed futures industry executives at the Boca Raton Hotel on Monday. He said the United States stands at the start of another innovation wave. He linked that growth to digitized markets and mainstream crypto assets.

He said blockchain, smart contracts, and crypto assets reshape trading and clearing systems. He added that artificial intelligence executes orders at speeds beyond human capacity. He described these tools as drivers of new commodity market structures.

Selig criticized prior regulatory actions under former SEC Chair Gary Gensler. He said enforcement-focused oversight drove parts of the crypto industry offshore. He also criticized a previous CFTC effort to block political prediction markets before the 2024 elections.

He announced a partnership with SEC Chair Paul Atkins under the “Project Crypto Initiative.” He said the initiative will end “the days of CFTC-SEC infighting.” He stated that both agencies will create a joint regulatory framework.

He said the plan includes a clear crypto asset taxonomy. He explained that firms must know whether products fall under CFTC or SEC jurisdiction. He called harmonization “integral to opening up new avenues for entrepreneurs.”

Agency Plans Guidance on Wallets, DeFi, and Retail Crypto Trades

Selig said he directed staff to draft guidance for software developers. He said the guidance will address intermediary registration rules for non-custodial systems. He named digital wallets and decentralized finance applications as examples.

He said the move answers a long-standing question about registration triggers. He stated that developers need clarity on compliance obligations. He confirmed that staff will publish formal guidance.

On retail trading, he said staff is reviewing leveraged and margined crypto transactions. He said the agency will clarify when off-exchange trades qualify for the “actual delivery” exception. He added that staff is studying standards for margined spot trading.

He said the agency is examining the classification of true crypto-perpetual products. He stated that officials are considering purpose-fit standards for exchanges. He confirmed that staff continues internal policy work.

Selig credited President Donald Trump for supporting the agency’s direction. He said Trump “deserves all the credit” for advancing a crypto-focused financial future. He tied that support to the agency’s renewed regulatory efforts.

He also addressed prediction markets during his remarks. He said the agency will assert jurisdiction after prior neglect. He referenced a 1992 no-action letter for the University of Iowa’s political markets.

He directed staff to draft guidance for event contracts. He announced an advanced notice of proposed rulemaking to gather public feedback. He said the CFTC recently filed an amicus brief in a state lawsuit involving a registrant.

He stated that the agency will assess litigation strategies to defend its exclusive derivatives jurisdiction. He concluded by linking prediction markets with blockchain systems. He said decentralized trust can act as a check on disinformation and debanking.

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