Trump's "Crypto-friendly" team assembled! Senate confirms CFTC and FDIC chair appointments

As Trump (Donald Trump) enters a critical phase of his second term, the US financial regulatory landscape finally fills in two of the most important pieces. On Thursday, the US Senate approved Mike Selig as Chairman of the Commodity Futures Trading Commission (CFTC) with a vote of 53 to 43, and Travis Hill to lead the Federal Deposit Insurance Corporation (FDIC), both regarded as key figures with a highly open and friendly stance toward Crypto.

In the division of Crypto asset regulation, the CFTC is gradually being pushed to the forefront. If Congress ultimately passes legislation that clearly grants the CFTC more comprehensive authority over Crypto assets, this agency, originally responsible for futures and derivatives, will become the most influential regulatory body in the US Crypto market.

After taking office, Mike Selig will succeed acting Chair Caroline Pham, who has actively promoted multiple “Crypto-friendly” policies during her tenure, paving the way for his succession. She has also stated that after stepping down, she will serve as Chief Legal Officer and Chief Administrative Officer at Crypto infrastructure service provider MoonPay.

The Challenge of the CFTC “Lone Ranger”

It is worth noting that during his previous tenure at the Securities and Exchange Commission (SEC), Mike Selig was deeply involved in Crypto policy-making. Now, as he takes over the CFTC, he will continue the vigorous “Crypto Sprint” initiative, with planned reforms including:

• Moving stablecoins into the category of “tokenized collateral”;
• Beginning to revise regulations to formally incorporate blockchain technology into regulatory language;
• Encouraging compliant platforms to issue spot leveraged Crypto products, with Bitnomial Exchange already leading the way with a related application.

However, Selig will face a very unique dilemma: the original five CFTC commissioners are now down to just him. Since Caroline Pham announced she would resign immediately after the new Chair takes office, this means Mike Selig will be the sole member of the commission.

While this allows him to push policies without resistance and with high efficiency, it also risks future legal challenges to new policies due to the lack of internal checks and deliberation processes within the commission.

Additionally, Congress is accelerating legislation to grant the CFTC broader oversight of Crypto spot trading. The House has already passed relevant bills this year, and they are now under review by the Senate. Sources indicate that the Senate Banking Committee may complete key review procedures as early as the end of the month.

FDIC New Policy: Saying Goodbye to the “De-banking” Shadow

Regarding the FDIC, the agency not only regulates stablecoin issuers but also holds the key to whether the Crypto industry can access banking services. When Travis Hill previously served as acting Chair of the FDIC, he demonstrated a distinctly friendly attitude.

“We have overturned policies from the past few years,” Travis Hill said at a hearing of the House Financial Services Committee on December 2. He referred to the Biden administration’s era, during which banking regulators required banks to obtain government approval before engaging in Crypto-related activities under old regulations. “Now, the responsibility of banks is to manage safety and soundness risks, but they are not prohibited from serving these industries.”

In addressing the long-standing industry criticism of “De-banking,” where banks cut off business relations with Crypto companies and executives under regulatory pressure, Travis Hill played a key corrective role. Many Republican lawmakers and industry insiders believe that this phenomenon was largely driven by outdated regulatory policies behind the scenes.

Trump Regulatory Puzzle Gradually Coming Together, the Fed Remains a Variable

The long-standing vacancies for the Chair and Vice Chair of the US CFTC and FDIC have been seen as the biggest gaps in Trump’s Crypto regulation efforts. Now, with the SEC, Office of the Comptroller of the Currency (OCC), and Treasury Department leadership in place, this puzzle is nearly complete. Regarding the Federal Reserve (Fed), Trump’s nominated Vice Chair for Supervision Michelle Bowman took office in June. The only remaining uncertainty is the future Chair, whose appointment will be decided after Jerome Powell’s term ends next year.

_ Disclaimer: This article is for market information only. All content and opinions are for reference only and do not constitute investment advice. They do not represent the objective views and positions of BlockCast. Investors should make their own decisions and transactions. The author and BlockCast are not responsible for any direct or indirect losses resulting from investor transactions. _

Tags: CFTCDonald TrumpFDICMike SeligTravis HillChair AppointmentCryptoTrump RegulationUS Commodity Futures Trading CommissionFederal Deposit Insurance CorporationFinance