CFTC Chair Mike Selig defends new rules to prevent exchange collapses

Commodity Futures Trading Commission Chair Mike Selig stated on Fox Business Network on Wednesday that new agency regulations will prevent another exchange collapse like FTX. Bitcoin Magazine reported that Selig offered crypto exchanges the opportunity to register with the regulator to safeguard digital asset spot markets. Bitcoin Magazine and CoinMarketCap both reported that the CFTC rulemaking aims to protect against future exchange failures. [1][8][9]

The agency moved to establish its own trading rules and regulatory framework following actions in Congress. KuCoin and 24/7 Wall St. reported that Selig expressed frustration over delays by lawmakers, while Startup Fortune reported that the CFTC initiated its own rulemaking after a Senate vote failed. The Cryptonomist and CryptoRank both reported that the agency has introduced federal crypto trading and exchange rules. [2][4][5][10][11]

Lawmakers have offered differing views on the recent administrative actions by regulatory agencies. Decrypt and bloomingbit both reported that United States House Financial Services Chairman French Hill said the crypto rules from the SEC and CFTC fall short of providing full clarity. Decrypt reported that Hill acknowledged the agencies for stepping in after the failure of the Clarity Act, but he asserted that only a permanent change in law can secure American leadership. [3][6][7]

The CFTC rulemaking comes years after the sudden collapse of FTX in 2022 due to mismanagement. Bitcoin Magazine reported that FTX founder Sam Bankman-Fried is serving a 25-year prison sentence for fraud and other crimes after $8 billion in customer funds vanished. [1]