Michael Selig: The US aims to be the global crypto capital through clear regulations, a shift to policing major fraud, and modernization of outdated frameworks | Empire

US aims to lead global crypto markets with modernized regulations and a focus on fraud prevention.

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Add us on Google by Editorial Team Jun. 8, 2026

Key takeaways

• The US is aiming to become the global leader in crypto through clear regulations and a compliance culture.
• Regulatory bodies are shifting focus to policing major fraud and manipulation, moving away from minor infractions.
• The current US regulatory framework is outdated for new technologies, necessitating modernization.
• The CFTC’s principle-based rules offer more flexibility for innovation compared to the SEC’s prescriptive approach.
• Harmonization between CFTC and SEC rules is needed for consistent trading across jurisdictions.
• The US is positioning itself to lead in novel derivatives products related to crypto.
• The CFTC is limiting leverage on derivatives products to a maximum of 10x for responsible innovation.
• Crypto perpetuals are supported in the US but may not be suitable for all asset classes.
• Lower transaction fees in perpetual products benefit both investors and exchanges.
• The goal is to make the US the crypto capital by bringing offshore exchanges under a regulated framework.
• The enforcement division will focus on core functions like fraud and manipulation rather than setting policy.
• The US regulatory strategy shift could significantly impact the future of crypto markets.
• Consistent rules across trading jurisdictions are crucial for crypto market growth and stability.
• The proactive approach to crypto derivatives reflects the US regulatory stance on innovation.

Guest intro

Michael Selig serves as Chairman of the US Commodity Futures Trading Commission (CFTC). Before leading the agency, he was chief counsel of the Securities and Exchange Commission’s Crypto Task Force and senior advisor to SEC Chairman Paul S. Atkins, where he helped shape regulatory policy for digital asset markets.

The US as the future crypto capital

• The US aims to become the crypto capital of the world through clear regulations and a culture of compliance.

  — Michael Selig

• The shift from regulation by enforcement to a more structured approach marks a new era for the SEC and CFTC.

• Our goal is to make the United States the crypto capital of the world by bringing offshore exchanges and products back under a regulated framework.

  — Michael Selig

• This strategic vision reflects a commitment to fostering economic activity within the US
• The focus is on creating a robust regulatory environment that supports innovation and market development.
• The US seeks to attract global crypto businesses by offering a clear and compliant regulatory landscape.

• The president’s been very clear we’re gonna make the United States the crypto capital of the world.

  — Michael Selig

• Bringing offshore products and brokers into the US market is a key part of this strategy.

Shifting regulatory focus

• The enforcement division will focus on core functions like policing fraud and manipulation rather than minor infractions.

  — Michael Selig

• This shift aims to create a culture of compliance within the crypto industry.
• The previous enforcement strategies are being reevaluated to prioritize significant issues over minor ones.

• We’re not going to have the enforcement division setting policy.

  — Michael Selig

• The emphasis is on returning to core functions such as fraud, manipulation, and insider trading.
• This approach is expected to create a more stable and predictable regulatory environment for crypto.
• The focus on major infractions aligns with the goal of supporting responsible innovation.
• A culture of compliance is seen as essential for the long-term growth of the crypto market.

Outdated regulatory framework

• The current regulatory framework for crypto is outdated and not designed for new technologies.

  — Michael Selig

• Existing rules did not anticipate the rapid evolution of the crypto space.
• There is a pressing need for modernization to accommodate innovations in digital assets.

• The reality is that our rules and regulations just were not set up for this.

  — Michael Selig

• The outdated framework poses challenges for both regulators and market participants.
• Modernizing the regulatory approach is crucial for maintaining competitiveness in the global market.
• The evolution of crypto requires a regulatory framework that can adapt to new technologies.
• This modernization effort is part of a broader strategy to position the US as a leader in digital asset regulation.

CFTC vs. SEC regulatory approaches

• The CFTC’s principle-based rules allow for more flexibility in adapting to new innovations compared to the SEC’s prescriptive rules.

  — Michael Selig

• The structural differences between CFTC and SEC impact how crypto innovations are managed.
• Principle-based rules offer a more adaptable framework for emerging technologies.

• The CFTC’s rules are principle-based, which makes them a little bit more flexible.

  — Michael Selig

• This flexibility is seen as advantageous for fostering innovation within the crypto space.
• The SEC’s prescriptive approach may limit its ability to accommodate rapid technological changes.
• Understanding these differences is key to navigating the regulatory landscape for digital assets.
• The CFTC’s approach is aligned with the broader goal of supporting responsible innovation.

Harmonization of rules

• There should be harmonization of rules between the CFTC and SEC to ensure consistency in trading across jurisdictions.

  — Michael Selig

• Inconsistent rules create challenges for crypto traders and market participants.
• Harmonization is essential for the growth and stability of the crypto market.

• We need to make sure that things are harmonizing consistent across.

  — Michael Selig

• Consistent rules would facilitate smoother trading and reduce regulatory arbitrage.
• This harmonization effort is part of a broader strategy to enhance the US regulatory framework.
• Ensuring consistency across jurisdictions is crucial for attracting global crypto businesses.
• The goal is to create a cohesive regulatory environment that supports innovation and market development.

Leading in crypto derivatives

• The United States is positioning itself to lead in novel derivatives products related to crypto.

  — Michael Selig

• This proactive stance reflects a commitment to fostering innovation in the derivatives market.
• The CFTC is focusing on responsible innovation by limiting leverage on derivatives products.

• We are not allowing for the thousand x leverage 100 x leverage that you would see offshore.

  — Michael Selig

• Limiting leverage to a maximum of 10x is part of a cautious approach to market development.
• The US aims to create a regulatory framework that supports both innovation and investor protection.
• This leadership position in derivatives is seen as a key component of the broader strategy to become the crypto capital.
• The focus on novel derivatives products aligns with the goal of fostering economic activity within the US

Supporting crypto perpetuals

• Crypto perpetuals are an important piece of the crypto market that the US wants to support.

  — Michael Selig

• The regulatory approach to perpetuals reflects a commitment to fostering innovation in the US market.
• Not all asset classes may be suitable for perpetual products, highlighting the need for careful consideration.

• The president has been very clear that crypto perpetuals are an important piece of the crypto market.

  — Michael Selig

• This support for perpetuals is part of a broader strategy to attract global crypto businesses.
• The focus is on creating a regulatory environment that supports both innovation and market development.
• Lower transaction fees in perpetual products benefit both investors and exchanges.
• This approach aligns with the goal of fostering economic activity within the US

Economic benefits of perpetual products

• Lower transaction fees in perpetual products benefit both investors and exchanges in the long term.

  — Michael Selig

• Reduced fees can lead to increased trading activity and market liquidity.

• It saves investors money when they’re transacting in perpetual products.

  — Michael Selig

• Exchanges should be open to this as it creates a new marketplace within the US
• The economic benefits of perpetual products align with the broader strategy to attract global crypto businesses.
• This focus on cost efficiency is part of a broader effort to support market innovation.
• Lower fees can enhance the competitiveness of US exchanges in the global market.
• The emphasis on economic benefits reflects a commitment to fostering innovation and market development.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.