CFTC's new leader takes office! Can they uphold half of America's financial regulation?

Written by: KarenZ, Foresight News

The U.S. Commodity Futures Trading Commission (CFTC) officially welcomes its new leader.

According to the statement released by the CFTC on December 22, 2025, Michael Selig Sworn officially took office on that day, becoming the 16th chairman in the agency's history.

Appointment Background

Michael Selig Sworn was nominated by President Trump on October 27, 2025, and confirmed by the U.S. Senate on December 18. This appointment marks the Trump administration's realignment of the financial regulatory system, particularly in establishing a regulatory framework for the emerging digital asset market.

However, the nomination process has not been smooth sailing. Trump initially nominated Brian Quintenz, a former CFTC commissioner and former policy head of a16z's crypto division, but ultimately withdrew due to resistance from the cryptocurrency industry. One reason for this was the dispute between Tyler Winklevoss and Cameron Winklevoss from Gemini and Brian Quintenz. Additionally, a source informed The Block that some concerns also focused on a16z's lobbying activities, and stated that Brian Quintenz was excluded as a result.

Subsequently, Michael Selig Sworn emerged as the top legal advisor of the U.S. Securities and Exchange Commission (SEC) Crypto Task Force, becoming the new nominee. The Senate Agriculture Committee advanced his nomination along party lines, ultimately confirmed by the full Senate.

Michael Selig Sworn's appointment occurred after a lengthy interim leadership period at the CFTC, following the announcement of the departure of former acting chair Caroline D. Pham on the same day, who will subsequently join MoonPay as Chief Legal Officer and Executive Director.

Who is Michael Selig Sworn?

Before taking office as the new chairman of the CFTC, Michael Selig Sworn accumulated a wealth of experience in both the public and private sectors.

According to the official statement, he will serve as the Chief Legal Advisor of the SEC's Special Cryptocurrency Task Force starting in March 2025, and he will also be a Senior Advisor to SEC Chairman Paul S. Atkins.

In this role, Michael Selig Sworn assisted in the development of a clear regulatory framework for the digital asset securities market, coordinating the regulatory systems of the SEC and CFTC, promoting the modernization of institutional rules to adapt to emerging technologies, and terminating the practice of regulation through enforcement means. Additionally, he participated in the President’s Working Group on Digital Assets and contributed to the report “Strengthening the United States’ Leadership in Digital Financial Technology.”

It is worth mentioning that the report “Strengthening America's Leadership in Digital Financial Technologies” is an executive order released by the White House on January 23, 2025. This executive action aims to promote America's leadership in the field of digital assets and financial technologies while protecting economic freedom. The core content includes supporting the responsible development and use of digital assets, blockchain technology, and related technologies across all economic sectors; prohibiting CBDCs; protecting the sovereignty of the dollar, and supporting dollar-backed stablecoins. In addition, this executive order also established the President's Working Group on Digital Asset Markets, providing clear policy guidance and strong legal support for the development of the digital asset industry in the United States.

Extended reading: “Ban CBDC, Uphold Dollar Sovereignty, Trump Signs First Crypto Executive Order”

From September 2015 to March 2025, Michael Selig Sworn served as an Associate in three law firms, and then in 2022, he held the positions of legal advisor and partner at Willkie Farr & Gallagher LLP. According to official documents from the CFTC, Michael Selig Sworn primarily engages in derivatives and securities regulatory matters. During his private practice, he provided representation for numerous clients regulated by the CFTC, including commercial end-users, futures commission merchants, commodity trading advisors, swap dealers, designated contract markets, derivatives clearing organizations, and digital asset companies. Selig has advised clients on compliance with the Commodity Exchange Act and CFTC rules, covering various aspects including registration applications and obligations, enforcement matters, and complex transactions.

It is worth mentioning that Michael Selig Sworn began his career in 2014 as a legal assistant to then CFTC Commissioner J. Christopher Giancarlo, before transitioning to a career in law firms.

In academia, Michael Selig Sworn holds a Juris Doctor degree from George Washington University Law School and has served as an article editor for The George Washington Law Review. He also holds an undergraduate degree from Florida State University.

CFTC's new chairman's regulatory vision: Centered on “Made in America” innovation, consolidating cryptocurrency leadership.

In his statement of employment, Michael Selig Sworn expressed gratitude for Trump's nomination and elaborated on his understanding of the future development direction of the CFTC, revealing an emphasis on balancing innovation and regulation in his words.

He pointed out that the current period is crucial for the development of the CFTC, with numerous new technologies, products, and platforms emerging, and retail investors' participation in the commodities market reaching an all-time high. Selig specifically emphasized the importance of the digital asset market structure bill that Congress is about to submit to the President, stating that it will solidify the United States' position as the “crypto capital of the world.” He also stated bluntly, “The CFTC will conquer these important areas, ensuring that future innovations are 'Made in America.'”

Regarding the role of the CFTC, Michael Selig Sworn provided a clear positioning: “In the new market of the American financial golden age, no institution is better suited than the CFTC to establish rules that align with common sense.”

Meanwhile, former Acting Chair Caroline D. Pham welcomed Michael Selig Sworn's appointment in her resignation statement, stating that he is pragmatic and results-oriented, able to balance innovation with market integrity. Additionally, Caroline D. Pham mentioned that the CFTC has identified “promoting responsible innovation and fair competition” as a core mission for 2025, particularly as the regulatory scope expands in emerging areas such as digital assets, cryptocurrencies, and prediction markets, which will lay the groundwork for Michael Selig Sworn's subsequent work.

Potential impact: regulatory shifts, accelerated coordination, and coexistence of challenges.

How will the appointment of Michael Selig Sworn reshape the landscape of financial regulation in the United States, especially in the regulatory ecology of digital assets? Based on his statements during hearings, past experiences, and industry trends, the direction of influence has gradually become clear.

Regulatory logic shift: from “strict law enforcement” to “emphasis on rules”, reducing the burden of “technical compliance”.

Michael Selig Sworn previously emphasized at the hearing that the CFTC is the appropriate regulator for spot digital commodity trading and supports Congress's swift advancement of legislation on the digital asset market structure. This is highly consistent with the Trump administration's goal of “making America the crypto capital.”

At the Senate confirmation hearing, according to WilmerHale, Selig repeatedly emphasized the vigilance against “overregulation” and “enforcement overreach.” He candidly stated that he has personally witnessed regulatory agencies neglecting the actual impact of their actions, becoming addicted to enforcement instead of regulation, ultimately pushing companies overseas and trapping entrepreneurs in red tape. To illustrate this point, he shared a personal experience: he once assisted an agricultural company in dealing with a major investigation by the CFTC, which was triggered merely by a “harmless error in swap data reporting.” However, the company was forced to divert significant time and resources from its core operations to respond, severely affecting normal operations.

This direction is highly consistent with the adjustment of enforcement focus promoted by Pham during his tenure, avoiding unnecessary regulatory burdens.

The implementation of legislation related to the structure of the digital asset market will be advanced rapidly.

Michael Selig Sworn clearly stated that the CFTC will promptly advance the implementation of legislation related to the market structure of digital assets and keep pace with market developments.

Coordinate SEC and CFTC to advance a unified framework

From a broader perspective, Michael Selig Sworn's background with the SEC helps to coordinate the differences between the two major regulatory agencies (SEC and CFTC), reduce overlapping regulation, and promote a unified framework. This could accelerate the normalization of the spot crypto market.

According to the 166-page report titled “Strengthening America's Leadership in Digital Financial Technology” by the “Presidential Working Group on Digital Assets,” the SEC and CFTC should coordinate to ensure an efficient rule-making process and solicit public input on proposed rules. The report also notes that the CFTC should clearly obtain regulatory authority over the spot market for non-securities digital assets. SEC and CFTC registered entities can engage in diverse businesses under an efficient licensing framework to avoid regulatory arbitrage. SEC registered entities should be able to provide trading of digital asset securities and engage in trading of non-securities digital assets under a licensing structure defined by Congress. CFTC registered entities should be able to provide trading of digital commodity derivatives, retail digital commodity trading, and other CFTC jurisdictional products as well as non-securities digital assets specified by Congress.

Extended Reading: “The White House Report Contains 100+ Legislative Proposals, a True Crypto Barometer”

What challenges are faced?

Michael Selig Sworn is also facing real challenges, such as resource and personnel gaps, and imbalances in committee composition.

Several senators have expressed concerns about the resources and staffing of the CFTC. According to a report by WilmerHale, the number of CFTC employees has decreased by about 20% since the beginning of Trump's second term, with approximately 600 employees currently. If Congress grants the CFTC more authority for cryptocurrency regulation, additional funding and personnel support will be needed. Unfortunately, Selig was vague in his commitments regarding specific resource needs during the hearing.

Another issue worth noting is the composition of the CFTC committee members. According to information on the official website, the CFTC committee consists of five members, appointed by the president with the advice and consent of the Senate, serving a five-year term with staggered rotations. However, after the acting chair's departure, the newly appointed Michael Selig Sworn has fallen into a special state of “dominating the situation.” Currently, Michael Selig Sworn is the only commissioner of the CFTC, and this “single commissioner” pattern has broken the conventional checks and balances mechanism, significantly enhancing the Trump administration's policy dominance over the CFTC. This pattern of “single commissioner dominance” has also sparked discussions about regulatory neutrality.

When asked whether the vacant seat set a bad precedent, Michael Selig Sworn declined to comment, stating that the nomination decision should be made by the president. This evasive response somewhat reflects the sensitivity of this unusual situation. When asked whether the vacant seat set a bad precedent, Selig declined to comment, stating that the nomination decision should be made by the president. This evasive response somewhat reflects the sensitivity of this unusual situation.

A key question is whether Michael Selig Sworn will continue the reform agenda initiated by Caroline D. Pham. Judging from the remarks made by both during the transition of power, this seems highly likely. Caroline D. Pham's assessment of Michael Selig Sworn indicates that the two leaders share considerable consistency in regulatory logic, both emphasizing the balance between innovation and market integrity.

In addition, Michael Selig Sworn's focus on digital assets and the structure of emerging markets, as well as his role in developing the coordination framework for the SEC and CFTC, suggests that he may promote further coordination between these two key financial regulatory agencies.

How Michael Selig Sworn will balance encouraging innovation with risk control, and how to advance broader regulatory responsibilities with limited resources, will become important highlights of the U.S. financial markets in 2026.

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