Two key positions in U.S. crypto oversight are moving forward in the Senate this week as the chamber establishes a list of dozens of nominees it will consider for confirmation at the same time, including Mike Selig as chairman of the Commodity Futures Trading Commission and Travis Hill as chairman of the Federal Deposit Insurance Corp.
Senate Majority Leader John Thune on Tuesday launched a process known as cloture in which the Senate prepares a vote to clear the 60-member threshold typically required. His resolution includes candidates for more than 80 federal positions (in some cases, like Selig’s, one person for two roles). The possible closing vote is expected on Thursday.
As the CFTC is poised to take a leading role in crypto oversight, Selig is poised to be confirmed for a commission position as well as the presidency. Because he will replace Acting Chair Caroline Pham, who is expected to leave the agency upon his arrival, he will be the only member of what is supposed to be a five-person commission, but the White House has not yet proposed any colleagues.
The US derivatives regulator has already implemented a number of crypto policies, but if the Senate ultimately completes its crypto market structure legislation, the agency will be additionally granted explicit powers over crypto markets.
At the FDIC, which will regulate stablecoin issuers and have a significant impact on how the crypto industry is banked, Hill was already leading the agency as acting chairman. In this role, he adopted a crypto-friendly stance.
“We reversed the policy of the last several years,” he told lawmakers during a Dec. 2 hearing before the House Financial Services Committee, referring to a Biden administration position in which banking regulators told bankers they needed approval from government supervisors before engaging in new crypto activity. “Banks are expected to manage security and soundness risks, but are otherwise not prohibited from serving these sectors.”
Hill also played a leading role in addressing complaints from the crypto industry over so-called “debanking,” in which banks severed relationships with crypto companies and their executives, a situation that industry insiders and many of their Republican legislative allies say was encouraged by regulatory policy.
