The U.S. Commodity Futures Trading Commission (CFTC) is strengthening its leadership as it prepares for a potentially expanded role in overseeing digital asset markets. Its president, Michael Selig, named two senior advisers, signaling the agency's desire to strengthen its expertise in regulating cryptocurrencies, while lawmakers consider texts likely to expand the CFTC's authority over the sector.
In brief
- The CFTC's new advisers bring expertise in cryptocurrency custody, blockchain and regulation as the agency prepares for expanded oversight.
- These appointments reflect the CFTC's desire to take on a broader regulatory role, while senators consider a partial transfer of market authority.
- The CFTC is relying on senior advisors amid vacancies in its leadership, with Michael Selig currently the only commissioner in office.
- Regulatory coordination challenges persist, as the priorities of the CFTC and SEC evolve with the national political context.
The preservation of cryptocurrencies at the heart of the new appointment at the CFTC
One of the new appointees, Michael Passalacqua, brings direct experience in cryptocurrency law and policy. In a statement Tuesday, Selig said Passalacqua was joining the commission as a senior advisor.
He previously served as a partner at Simpson Thacher & Bartlett, where he advised on financial regulatory issues related to crypto assets and blockchain technology. Earlier in his career, Passalacqua also served as deputy general counsel at a crypto-focused capital markets firm, working on regulatory compliance and transaction-related issues.
At Simpson Thacher, Passalacqua helped writea legal letter leading the Securities and Exchange Commission (SEC) to adopt a hands-off stance on the custody of cryptocurrencies. This guidance allowed state-licensed trust companies to act as crypto custodians without exposure to enforcement action.
In September, the SEC's Division of Investment Management reaffirmed this position, indicating that it would not recommend enforcement actions against advisors using these trust companies for custodial services.
Leadership moves at CFTC reflect push toward broader regulation
The CFTC Chairman also appointed Cal Mitchellformer official at the US Treasury Department, as senior advisor. Together, these appointments illustrate the agency's efforts to strengthen its internal expertise as it prepares for a possible expansion of its mandate under legislation currently being considered in the Senate.
These decisions highlight several underlying trends:
- an increased emphasis on crypto and blockchain regulation experience;
- preparation for expanded oversight of digital assets;
- alignment with the legislative proposals underway in the Senate concerning market supervision;
- increased reliance on senior advisors due to management vacancies;
- persistent coordination challenges among U.S. financial regulators.
Selig said the agency is actively preparing its regulatory framework to anticipate future market developments. Lawmakers are currently considering bills that would give the CFTC authority over cryptocurrency spot markets, a segment long marked by regulatory uncertainty.
Similar dynamics are observed on the SEC side. In October, its president, Paul Atkins, said the agency would align its policies with President Donald Trump's digital assets agenda. However, analysts point out that the evolution of the political landscape could call this orientation into question. The result of the 2026 midterm elections could notably determine the sustainability of current crypto policies.
Appointed by Trump after the resignation of former acting president Caroline Pham, Selig is now the only current commissioner at the CFTC. With no new appointments to fill vacant seats, the concentration of responsibilities at the top remains, as the agency continues to strengthen its oversight of the crypto sector.
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