Michael Selig, U.S. President Donald Trump’s nominee to chair the Commodity Futures Trading Commission (CFTC), faced questions from senators during a hearing before the Senate Agriculture Committee. Lawmakers pressed him on whether the agency needs additional funding to serve as the primary regulator for digital assets and how he would prevent another "FTX-style" collapse.

At Wednesday’s hearing, Selig offered insights into how the CFTC might oversee digital assets under his leadership. "We need clear, concise guidelines," Selig stated. "We must protect consumers while moving away from 'regulation by enforcement.' This is a prime opportunity to establish a framework where software developers can thrive and new exchanges can emerge—ones that safeguard investors, implement expected controls, and enforce proper disclosure requirements common in financial markets."

**CFTC at the Core of Crypto Legislation** If confirmed by the Senate, Selig would lead the agency during a pivotal period as lawmakers aim to position the CFTC as the dominant regulator for cryptocurrencies. Bills in both the House and Senate propose expanding the agency’s authority over the crypto sector.

Earlier this month, the Senate Agriculture Committee released a long-awaited draft of comprehensive crypto regulation, which has bipartisan support but includes unresolved issues requiring alignment with the Senate Banking Committee’s proposal. Selig emphasized the importance of discussions on the Agriculture Committee’s bill and the Clarity Act. "Implementing these regulations will require significant effort, so I strongly encourage lawmakers to finalize these measures—both are highly meaningful," he said.

**Funding Concerns and FTX Fallout** Selig repeatedly faced questions about whether the CFTC requires more funding. With just 543 full-time employees—compared to the SEC’s 4,200—the agency’s capacity to handle expanded oversight of digital assets remains a recurring topic in congressional hearings. Selig hesitated on the issue, stating he would assess funding needs if confirmed as chair.

Lawmakers also grilled Selig on the 2022 collapse of FTX, which filed for bankruptcy amid liquidity crises and fraud allegations. Asked how he would prevent a repeat, Selig replied, "As I noted recently, the boundaries of manipulation and fraud are limited only by human ingenuity, making prevention inherently challenging." He pledged strict enforcement if appointed.

If confirmed, Selig would become the CFTC’s sole commissioner—the agency typically has five. Over the past year, four commissioners (Democrats Kristin Johnson and Christy Goldsmith Romero, along with Republicans acting Chair Caroline Pham and Summer Mersinger) have departed or announced plans to leave. Republican Pham currently serves as acting chair but has said she will step down once a new chair is confirmed.