US Crypto Regulation Is Changing: What New CFTC, FDIC Heads Mean

[Ben Graham]

The U.S. Senate just confirmed two crypto-friendly leaders, Mike Selig and Travis Hill, to lead powerful financial agencies. Here, I, who has been tracking the CFTC-SEC jurisdictional battle since 2020, will break this regulatory matter down.

Selig will now chair the Commodity Futures Trading Commission (CFTC), while Hill will head the Federal Deposit Insurance Corporation (FDIC). For everyday crypto users, this signals a potential shift from regulatory hostility to clearer, more supportive rules in the United States.

It’s bullish for us in crypto, and Selig’s confirmation is a win; he is currently a commissioner of one. Having covered the CFTC for years, I know that operating without a full quorum limits how aggressively it can push new rulemakings until the remaining four seats are filled.

Think of the government’s financial regulators as different referees for different sports. For years, crypto has been stuck in a game where no one knew which referee was in charge. The Securities and Exchange Commission (SEC) has often been tough on crypto, treating most assets like stocks, while the CFTC, which handles commodities like oil and gold, has been seen as more open to innovation.

These appointments place leaders who have publicly supported the industry at the top of two critical agencies. As Coinbase’s Chief Policy Officer, Faryar Shirzad, noted on X, Selig’s experience will help ensure the U.S. crypto market is governed with “fairness, clarity, and an abiding commitment to the law.”

Congratulations @MikeSeligEsq on your confirmation to lead @CFTC. Mike is exceptionally well-suited for the role. His experience in crypto and as a federal regulator will ensure that America’s crypto market is governed with fairness, clarity and an abiding commitment to the law.… https://t.co/6NXWE8asAN

— Faryar Shirzad (@faryarshirzad) December 19, 2025

What Do the CFTC and FDIC Actually Do?

Understanding these agencies is key to seeing why this news matters. The CFTC’s potential role in crypto is expanding, and many in Washington believe it is better suited than the SEC to oversee digital assets.

There are already bipartisan efforts, like the CLARITY Act, to give the CFTC more direct authority over crypto markets. With a pro-crypto chair, the agency is now better positioned to create rules that could support growth instead of slowing it down. This follows a trend of the CFTC approving innovative crypto products.

The FDIC’s role is also changing. It’s the agency that insures your bank deposits up to $250,000. As stablecoins (digital dollars) become more common, the FDIC will have a major say in how they are regulated and banked. Hill has previously spoken out against banks being pressured to deny services to crypto companies, a practice known as “debanking.” The GENIUS Act (passed earlier in 2025) provides the “handbook” that Travis Hill will now use at the FDIC to manage stablecoins.

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How Does This Affect Your Crypto?

This isn’t just political news; it has real-world implications. Clearer rules from friendly regulators could make the entire U.S. crypto market safer and more stable for investors. The ongoing political debates, highlighted by figures like Elizabeth Warren, show how high the stakes are. And we know that Senator Warren’s coalition still holds significant sway, and they will be scrutinizing Selig’s every move through the Senate Agriculture Committee.

For Exchanges & Apps: Companies like Coinbase and Kraken may finally get a clear rulebook, reducing the risk of sudden lawsuits that can cause market panic. This stability can attract more mainstream investment.

For Stablecoins: With the FDIC under new leadership, we may see sensible regulations for stablecoin issuers. This would strengthen the foundation of the entire DeFi world, as stablecoins are its lifeblood.

Below is the changed tone after both Selig and Hill took their offices.

However, this is not a final victory. The SEC continues to pursue its own enforcement actions. The path forward involves continued legislative effort and cooperation between these agencies.

These appointments are a strong signal that the U.S. is moving toward embracing digital assets, but the details still need to be worked out.

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