Hearings to examine the nomination of Michael Selig, of Florida, to be a Commissioner of the Commodity Futures Trading Commission.

Agriculture, Nutrition, and Forestry Committee

2025-11-19

Source: Congress.gov

Summary

Mr. Michael Selig's nomination to be Chairman and Commissioner of the Commodities Futures Trading Commission was the subject of a Senate committee hearing[ 00:25:02 ]

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. The hearing included testimony from Mr. Selig and introductory remarks from Chairman Christopher Giancarlo. Senators questioned Mr. Selig on a range of topics, including the regulation of digital assets, the CFTC's resources, and its core mission of supporting agricultural risk management[ 00:25:19-00:26:49 ]

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Themes

CFTC's Role and Digital Asset Regulation

The CFTC's unique position as the sole federal financial regulator for agricultural and energy risk management markets was highlighted[ 00:25:19 ]

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. The markets it oversees have evolved to include emerging areas such as crypto, digital derivatives, and event contracts[ 00:26:41 ]

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. There was a strong bipartisan consensus that the CFTC is the appropriate agency to regulate spot digital commodity trading, given its expertise in commodities[ 00:27:04 ]

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. However, Congress must grant the agency this new authority to prevent U.S. consumers from being vulnerable to bad actors and to foster innovation within the U.S.[ 00:27:37 ]

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. Mr. Selig emphasized the need for clear, simple guidelines and consumer protection to allow developers to thrive and to safeguard investors.

Leadership and Resource Challenges at CFTC

Concerns were raised about the CFTC's current state, operating with only one commissioner and an acting chairman, rather than its intended five-person, bipartisan commission. Several senators stressed the importance of having a full complement of bipartisan commissioners to ensure diverse viewpoints and robust decision-making, particularly as the agency faces new responsibilities related to digital assets[ 00:47:50 ]

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. There was also significant discussion about the CFTC's staffing and resource needs, especially given its smaller size compared to the SEC and the potential mandate to regulate a $4 trillion digital asset market. Mr. Selig stated that, if confirmed, he would assess the agency's resource needs and work with Congress accordingly[ 00:45:08 ]

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Principles-Based Regulation and Market Integrity

A principles-based approach to regulation was advocated as a way to foster innovation while maintaining market integrity[ 00:25:53 ]

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. This approach allows market participants flexibility in compliance, ensuring markets are resilient, vibrant, and protect investors from fraud and manipulation. Mr. Selig committed to instituting common-sense, principles-based regulations that keep pace with innovation and avoid over-regulation that can drive businesses offshore. He emphasized the need for clear and simple guidelines, rather than "regulation by enforcement" or unwritten rules, to benefit everyday Americans and entrepreneurs.

Agriculture and Traditional Markets

The hearing underscored the critical role of the CFTC in supporting American farmers, ranchers, and energy producers who rely on futures and swaps for price discovery and risk management[ 00:25:40 ]

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. Mr. Selig affirmed his commitment to this core mission, pledging to be accessible to agricultural stakeholders, to sponsor the Agricultural Advisory Committee, and to tour the country to meet with the ag community. He also plans to have a dedicated agriculture advisor in his office. Concerns were raised that over-regulation of intermediaries makes it too expensive for farmers and ranchers to access derivatives markets, potentially leading to market volatility.

Event Contracts and Gaming

A significant portion of the discussion revolved around event contracts, particularly those related to sports, and whether they constitute illegal gaming[ 00:57:00 ]

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. Several senators pressed Mr. Selig on his interpretation of existing prohibitions against gaming in CFTC regulations. Mr. Selig consistently stated that these are complex legal interpretive questions that he would defer to the courts on, and he would uphold the law and enforce any mandates if confirmed[ 00:57:45 ]

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. There was also a specific question regarding former President Trump's "Truth Predict" platform and how Mr. Selig would handle potential requests for exceptions.

Tone of the Meeting

The tone of the meeting was largely respectful but included several instances of direct and probing questioning, particularly regarding Mr. Selig's stance on resource needs and the controversial topic of event contracts[ 00:50:06 ]

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[ 01:31:32 ]

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. Senators from both parties expressed concerns about the CFTC's capacity and the importance of a full, bipartisan commission[ 00:47:50 ]

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. Mr. Selig maintained a cautious and deferential approach, often stating he would assess issues once confirmed and would follow legal interpretations from the courts[ 00:45:08 ]

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. While there was bipartisan agreement on the significance of the CFTC's mission and the need for clear digital asset regulation, some senators conveyed frustration with his non-committal answers on specific resource commitments and the legality of sports betting contracts[ 00:50:06 ]

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Participants

Transcript

I've been visiting with Senator Tuberville about SEC football, who the next coaches are going to be throughout the league.  I don't know that we settled anything, but I got a little bit more information.  So with that, it's my privilege to call the hearing to order.   I thank my colleagues for joining us today.  We will consider the nomination of Mr. Michael Selig to be Chairman and Commissioner of the Commodities Futures Trading Commission.  Mr. Selig, congratulations on your nomination and thank you very much for your willingness to serve and your family.  These are always family affairs.   So again, we appreciate you very much.  As this committee knows well, the CFTC is unique in that it's the only federal financial regulator that oversees the agriculture and energy risk management markets, the resiliency of which are critical to our commodity supply chains.  Well-regulated liquid and resilient derivatives markets help our producers manage risk ranging from interest rate uncertainty,   commodity pricing volatility, and natural disasters.  In times when uncontrollable risks can wipe away years of hard labor, futures markets are an essential risk management tool in the toolbox.   The CFTC has historically taken a pragmatic, principles-based approach to regulation and has engaged in constructive dialogue with regulated entities and market participants.  This approach, combined with diligent policing of the cash and derivatives commodity markets,   has resulted in trust in the CFTC and the deepest, most liquid derivatives market in the world.  The CFTC's regulatory regime is time-tested and has helped the derivatives market serve as a gold standard
in terms of withstanding external shocks, and the CFTC staff have developed deep expertise of the derivatives market.  The CFTC has seen the markets it regulates evolve over time.  Emerging markets such as crypto, derivatives, and event contracts have grown in size, and Congress, including this committee, is actively working on granting CFTC authority to regulate the spot digital commodity markets.   Turning attention to the nuances that come with emerging markets while ensuring focus on agricultural risk management markets is essential.  And it's my expectation that CFTC leadership will strike this balance.   I want to repeat that I've said multiple times before this committee, the CFTC is the right agency to regulate spot digital commodity trading.  The CFTC and only the CFTC should regulate the trading of digital commodities.   This is because only the CFTC understands the unique characteristics of commodities and commodity-based contracts.  While the CFTC has the right regulatory approach, expertise, and skill to set   to handle this new responsibility.  It's up to Congress to grant the agency this new authority to regulate spot digital commodity trading.  Failure by Congress to do so will leave U.S. consumers vulnerable to bad actors and will keep the U.S. behind the rest of the world.  Though a regulatory framework for spot digital commodities is yet to be authorized by Congress, the markets and underlying technology are fast at work.   Absent a comprehensive U.S. regulatory framework, bad actors will continue to go unchecked, and legitimate entities will be disincentivized from participating in U.S. markets.  All the while, U.S. consumer participation will continue to grow, as will the risks faced by consumers.
The Committee has an opportunity to advance its portion of a regulatory framework that protects U.S. customers,   also allows U.S. businesses to grow and recognizes the importance of innovative blockchain technology and fundamental principles like the right to self-custody.  I want to thank Senator Booker for his partnership on our bipartisan discussion draft, and I look forward to working with him and the rest of the committee to advance a bipartisan proposal out of this committee.  The time to act is now, and I look forward to working with each of you towards advancing the goal.   As this committee moves forward with its bipartisan proposal to grant CFTC authority, I'm eager to work with Mr. Selig and CFTC on ensuring we get this right.  So, so very important.  I look forward to hearing from Mr. Selig on these issues.  Again, congratulations on your nomination.   Senator Kolbuchar is going to join us in a bit.  You'll see that there's just all kinds of stuff going on right now, so we're going to have people coming and going.   So she will join us momentarily.  We will now proceed with our witness introduction.  Following the introduction, the ranking member will be around, and we will recognize her at that time.  I now recognize Chairman Christopher Giancarlo, who will introduce our nominee, Mr. Michael Selig.
Thank you, Chairman Bozeman, members of the committee.  It's an honor to be before you once again, if I may say,   I've had this honor several times in the past, both as a nominee for commissioner and as chairman, and I'm joined here today by a number of other distinguished former commissioners and chairs who've also had the honor of appearing before this committee.  As they know and I know, this committee often meets in a much smaller room, a room that really features what I think one of the most distinctive features of any of the architecture of the Senate buildings, and that is a simple table.  This committee

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