Michael Selig Backs Crypto Oversight, Warns of Offshore Risk
CFTC nominee Michael Selig supports strong crypto oversight but warns that enforcement-only regulation could drive firms overseas.
- Michael Selig supports clearer oversight for digital assets and DeFi
- Warns enforcement-only tactics could drive innovation offshore
- Advocates for balanced, innovation-friendly regulation
Selig Urges Smarter Crypto Regulation at CFTC Hearing
Michael Selig, the nominee to lead the U.S. Commodity Futures Trading Commission (CFTC), voiced firm support for stronger oversight of digital assets and decentralized finance (DeFi) during his Senate nomination hearing. However, he also issued a clear warning: without structured and transparent regulations, enforcement-only tactics could push crypto firms and innovation overseas.
His comments reflect growing concern among policymakers and industry leaders about the current U.S. approach to digital asset regulation, which many believe is unclear and inconsistent.
Regulation by Enforcement Isn’t the Answer
Selig emphasized that while regulatory oversight is essential, it must be guided by clear rules—not just enforcement actions after the fact. He warned that relying solely on penalties and investigations creates uncertainty for startups and established crypto businesses alike.
“Regulation by enforcement is not sustainable,” Selig stated. “It discourages innovation and drives entrepreneurs to jurisdictions with clearer rules.” He pointed out that the U.S. should be leading the development of responsible crypto markets—not watching from the sidelines as talent and capital leave the country.
Seeking a Clear Path for DeFi and Digital Assets
If confirmed as CFTC Chair, Selig said he would push for well-defined, forward-looking rules that ensure market integrity while also supporting technological innovation. His balanced approach positions him as a potential ally for those in the crypto industry calling for fairer treatment and legal clarity.
His stance may help shape a more collaborative regulatory environment at a time when the CFTC and SEC continue to vie for jurisdiction over crypto markets. The industry will be watching closely as his confirmation process unfolds.
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