Oct 8, 2026 · 47 min
Listen from 23:04
Listen at 23:04
CFTC builds crypto rules after Congress stalls
Mike Selig: The CFTC's New Rules for Crypto
The regulatory framework taking shape without the Clarity Act could determine how exchanges, investors, and digital-asset markets operate across administrations.
- 1The CFTC and SEC are using existing authority to create a federal registration framework for crypto exchanges.
- 2Selig distinguishes Bitcoin, Ether, and Solana from meme coins while emphasizing surveillance, custody, and consumer protection.
- 3Durable bipartisan rules could expand Bitcoin’s role as collateral while reducing the risks exposed by FTX’s collapse.
Don't miss
Selig argues that crypto rules should survive changes in administration and benefit users across the political spectrum.
The brief
CFTC Chairman Michael Selig explains how the agency and SEC plan to clarify crypto-market rules after the Clarity Act failed to advance, relying on existing authority rather than waiting for Congress.
Selig proposes a voluntary, tailored federal registration system for exchanges, arguing that state money-transmitter regimes and the previous administration’s invitation to register left major gaps.
The interview weighs surveillance against self-custody, asking how regulators can monitor globally traded markets without turning centralized platforms into barriers to holding digital assets.
After FTX, Selig frames consumer protection as a reason for clear federal rules, while criticism of making America the crypto capital tests whether regulation serves users or industry.
Selig separates meme coins from Bitcoin, Ether, and Solana, and says builders should prioritize useful technology over speculation and politically associated tokens.
The closing argument is institutional: coordinated rules from the CFTC, SEC, banking regulators, Treasury, and FinCEN should survive changes in administration and support Bitcoin as collateral.
What was said on this episode
41 statements · 29 positive · 3 negative · 9 neutral
CFTC rules would have protected FTX customer funds from theft.
“Sam Bankman-Fried and FTX stole eight point some billion dollars in customer funds and our rules would have protected that.”
Listen at 0:06
The CFTC will use existing authority to implement crypto market structure.
“we're going to use our authorities to deliver for the president.”
Listen at 0:20
People have a right to self-custody assets and protect on-chain privacy.
“We absolutely believe in the right to self custody your assets and protect your own privacy in on chain transactions.”
Listen at 0:32
New rules will establish federal standards for crypto exchanges.
“these are going to set in place clear rules of the road for exchanges that want to offer trading and crypto assets under federal protections and federal standards.”
Listen at 1:42
Existing statutes allow crypto exchanges to opt into a federal framework.
“what we can do with our existing statute is allow for an opt-in.”
Listen at 3:52
The CFTC will impose market-based regulations on participating platforms.
“We will impose market-based regulations.”
Listen at 4:22
Federal-framework exchanges may offer retail margin trading unlike state exchanges.
“these exchanges are authorized to do that unlike the state exchanges”
Listen at 4:57
Purpose-built crypto rules will account for technology and protect customers.
“we're going to put in place purpose fit rules of the road that account for the technology that are going to protect customers”
Listen at 6:37
Some tokens can trade as commodities after separating from investment contracts.
“the tokens can trade like commodities in many cases”
Listen at 10:37
CFTC markets allow commodity-token trading but not investment-contract trading.
“in our markets, we allow for the trading just of the commodities, not of these investment contracts.”
Listen at 11:08
CFTC margin methodologies have not permitted exchanges above roughly 7x leverage.
“thus far, we've not permitted any exchange based on our margin methodologies to move much above 7x.”
Listen at 11:55
U.S. regulators continuously cooperate with foreign regulators on crypto oversight.
“we're working constantly together with regulators in Europe and the UK and Japan and Singapore, really across the world.”
Listen at 12:28
The administration supports self-custody and privacy for on-chain transactions.
“We absolutely believe in the right to self-custody your assets and protect your own privacy in on-chain transactions”
Listen at 13:47
Crypto technology is valuable and has recovered from FTX’s collapse.
“this technology is such a valuable one.”
Listen at 16:06
CFTC regulations protected funds at FTX’s regulated derivatives subsidiary.
“the CFTC regulations worked.”
Listen at 16:57
Regulators must prevent another FTX-style failure.
“We can't allow another FTX.”
Listen at 17:02
Intermediaries entrusted with customer funds require regulation.
“we do need to regulate an environment where you are trusting others with your funds.”
Listen at 19:09
Crypto regulation protects Americans from potentially harmful fraud.
“we're going to keep doing our job because we believe in the mission of protecting the American people from frauds that really could be very harmful.”
Listen at 20:48
The CFTC classifies meme coins as digital collectibles.
“meme coins we've characterized under our interpretation as a digital collectible.”
Listen at 21:21
Some meme coins have heightened manipulation risk.
“there's a heightened risk with some of the meme coins”
Listen at 22:45
Crypto builders should prioritize technology and use cases over price appreciation.
“Everybody stopped focusing on, you know, the number go up and all of that and really building out the technology and the use cases.”
Listen at 24:49
Many other crypto tokens and markets need product-market fit and staying power.
“For a lot of these other types of tokens and markets, they do have to find a product market fit.”
Listen at 25:23
Token launches should serve meaningful, valuable use cases.
“Don't just launch a token to launch a token. Launch one where it makes sense and it's valuable to people who actually want to go buy it and use it.”
Listen at 26:05
Well-designed crypto rules will survive changes in administration.
“Good rules will stand the test of time.”
Listen at 26:18
Future administrations are unlikely to repeal effective crypto rules.
“I don't think there's much risk of a future administration coming and taking the rules away.”
Listen at 26:27
Durable crypto market structure will be established despite legislative delays.
“we're going to get crypto market structure in place that's durable.”
Listen at 28:48
If the United States does not lead crypto, an adversary will.
“if we don't own this market somebody else will”
Listen at 30:03
The United States will continue leading global financial markets.
“the United States is always led in financial markets. And I believe we always will.”
Listen at 30:06
Bitcoin is primarily a commodity rather than a currency.
“I've always viewed it as more of a commodity.”
Listen at 30:34
People primarily use Bitcoin as a store of value.
“people take as a store value”
Listen at 30:37
CFTC derivatives markets allow firms to use Bitcoin and crypto assets as collateral.
“our derivatives markets now allow for firms to take Bitcoin and other crypto assets, give them to their broker, their futures commission merchant, which is the futures world name for a broker. They can provide those as collateral and then go trade in our markets.”
Listen at 31:53
Use of Bitcoin and crypto assets as derivatives collateral is expected to increase.
“we do expect to see a lot more of that”
Listen at 32:34
Financial regulators will issue more crypto rulemakings and guidance.
“I do expect to see more in terms of rulemakings, guidance, clarity.”
Listen at 33:46
Blockchain technology has demonstrated viability and rapidly expanded use cases.
“the technology has proven itself and the use cases have exploded.”
Listen at 39:54
The United States should enable blockchain innovation and experimentation.
“We should create a space where they can do so.”
Listen at 40:34
Crypto regulation should use clear, simple, understandable rules.
“I like clear, simple rules that are easy to understand”
Listen at 41:09
Regulators should avoid regulating crypto activity that does not require oversight.
“we're not looking to regulate activity that doesn't need to be regulated”
Listen at 41:44
Lending, leveraged trading, and market activity require regulation.
“when you're engaging in activities like lending and accepting margin and leverage and trading in our markets then of course we regulate that”
Listen at 41:55
Registered crypto exchanges can operate while complying with CFTC rules.
“you'd be able to operate and, of course, comply with our rules and regulations.”
Listen at 43:34
The proposed crypto regime includes a 60-day public comment period.
“there's a 60-day comment period”
Listen at 44:09
Well-designed crypto policy will remain durable across administrations.
“I believe that good policy will be durable.”
Listen at 44:32
Statements are attributed to the speaker as said on the episode and reflect their view at the time, not PodLume's. They are not advice.