CFTC Chair Michael Selig Launches Future-Proof Review to Update Crypto and AI Market Rules

• CFTC Chair Michael Selig begins a Future-Proof review to update outdated rules for crypto markets and AI trading tools.

• The agency plans custom fit regulations that protect markets while allowing blockchain platforms and new products to grow.

• Selig continues the crypto agenda with new leadership and advisory groups focused on modern financial technologies.

Michael Selig began his tenure as chair of the U.S. Commodity Futures Trading Commission with a clear regulatory reset. He framed his leadership as a shift toward modern financial oversight as digital markets expand.

🚨🇺🇸 NEW: CFTC Chair Michael Selig has launched the “Future-Proof” initiative to modernize regulation for digital asset markets. pic.twitter.com/kUbCXXWcXJ

— The Crypto Times (@CryptoTimes_io) January 21, 2026

His arrival comes amid rising pressure on Washington to clarify digital asset regulation. Policymakers face growing demands from market participants seeking consistent federal rules. Consequently, Selig placed regulatory modernization at the center of his early agenda.

Selig Launches Future-Proof Review at the CFTC

Shortly after assuming office, Michael Selig introduced the Future-Proof initiative. The review targets decades-old CFTC rules that predate crypto markets and advanced trading technologies. Moreover, the initiative aims to align oversight with blockchain platforms and AI-driven tools. Selig described the current period as a turning point for U.S. financial markets. Therefore, the agency plans to update how it supervises emerging products.

In addition, Selig highlighted that technology now shapes how financial instruments are created and traded. He pointed to congressional momentum around digital asset market structure legislation. Such legislation would define regulatory mandates across agencies. As a result, regulators could apply clearer standards to a market valued above $3 trillion. This approach marks a departure from recent regulatory practice.

Shift Away From Enforcement-First Regulation

Selig criticized prior regulatory methods that relied heavily on enforcement actions. He argued that agencies forced digital assets into traditional market frameworks. Consequently, innovation slowed and market participation narrowed. Under his leadership, the CFTC plans to design purpose-specific rules. These rules aim to prevent fraud and manipulation without limiting early product development.

Furthermore, the Future-Proof review requires staff to reassess existing regulations. Many of these rules originated in agricultural futures markets. While suitable for legacy products, they fail to address blockchain trading venues. They also overlook prediction markets and AI-based risk management tools. Hence, Selig seeks a regulatory baseline that supports both incumbents and new entrants.

New Chair Continues Expanding Crypto Agenda

Selig officially assumed office on December 22 following Senate confirmation on December 18. He replaced acting chair Caroline Pham, who advanced several crypto initiatives. During her tenure, the CFTC launched the Crypto Sprint program. The agency also approved spot crypto trading on regulated futures platforms.

In addition, Pham introduced internal reforms focused on efficiency. The CFTC deployed automated market surveillance tools expected to save nearly $50 million annually. She also granted no-action relief to select prediction market operators. That relief reduced enforcement pressure while requiring full collateralization and transparency.

Early Appointments Signal Broader Reset

Since taking office, Selig has moved quickly to shape leadership priorities. On January 1, he appointed Amir Zaidi as chief of staff. Zaidi previously worked on early regulated Bitcoin products at the CFTC. Later, on January 13, Selig launched the Innovation Advisory Committee.

This body replaces the former Technology Advisory Committee. It brings together industry, academic, and public interest experts. The committee will guide rulemaking for emerging financial technologies as the agency updates its regulatory framework.