CFTC Chair Selig Makes Strategic Move: Appoints Veteran Crypto Lawyer as Senior Adviser

In a significant development for US financial regulation, Commodity Futures Trading Commission (CFTC) Chair Michael Selig announced the appointment of a seasoned cryptocurrency lawyer as a senior adviser on Tuesday, December 9, 2025. This move directly signals the agency’s preparation for an expanded role in overseeing the rapidly evolving digital asset markets, a responsibility pending from proposed Senate legislation.

CFTC Bolsters Expertise with Key Crypto Legal Hire

Chairman Michael Selig named Michael Passalacqua, a former associate at the prestigious international law firm Simpson Thacher & Bartlett, to join the CFTC as a senior adviser. Selig explicitly highlighted Passalacqua’s deep experience with financial regulatory matters involving crypto assets and blockchain technologies. This appointment is not an isolated personnel change. It represents a deliberate step to inject specialized legal expertise directly into the commission’s leadership team. Consequently, the CFTC aims to navigate the complex intersection of traditional finance law and decentralized digital innovation.

Passalacqua’s background is particularly relevant. Earlier in his career, he served as assistant general counsel at a crypto asset capital markets firm. In that role, he advised on a wide range of regulatory and transactional matters. His practical industry experience, combined with his tenure at a top-tier law firm, provides the CFTC with a dual perspective. This perspective is critical for crafting enforceable and coherent policy.

The Significance of the SEC No-Action Letter

Perhaps the most notable item on Passalacqua’s resume is his involvement in a pivotal regulatory milestone. According to his former firm, he helped author a letter that led the US Securities and Exchange Commission (SEC) to issue a crucial no-action letter in September 2024. This letter effectively cleared state-chartered trust companies to act as qualified custodians for cryptocurrency assets. The SEC’s Division of Investment Management stated it would not recommend enforcement actions against investment advisers using such state trust companies for crypto custody.

This precedent is monumental for institutional adoption. It provided a regulatory pathway for traditional financial entities to engage with digital assets. Passalacqua’s firsthand role in achieving this outcome gives him unique insight into the SEC’s stance and the practical hurdles of crypto compliance. His appointment suggests the CFTC values this specific experience as it defines its own custody and market oversight frameworks for digital commodities.

A Dual Appointment for a Broader Mission

Chairman Selig did not appoint Passalacqua in isolation. He simultaneously named Cal Mitchell, a former Treasury Department official, as a second senior adviser. This dual hiring underscores the commission’s multifaceted approach. Mitchell brings public policy and macroeconomic experience, while Passalacqua delivers niche legal and industry expertise. Together, they form a advisory team equipped to handle both the high-level policy and granular legal details of digital asset regulation.

Selig framed these appointments within the context of “future-proofing” the CFTC’s regulatory approach. He directly cited pending US Senate legislation, known as the Digital Commodities Consumer Protection Act, which would grant the CFTC explicit spot market authority over digital commodities like Bitcoin and Ethereum. This would be a dramatic expansion of the agency’s traditional purview, which has primarily covered futures and derivatives contracts.

The Evolving Regulatory Landscape and Political Dynamics

The CFTC’s capacity-building move occurs amidst a dynamic and sometimes contentious regulatory environment. The SEC, under Chair Paul Atkins, has also spoken of “future-proofing” regulatory approaches, particularly in alignment with President Donald Trump’s crypto agenda. However, the regulatory momentum faces political uncertainty. Many experts warn that policies advanced under the current administration, including those on digital assets, could be reversed if Democrats gain control of Congress in the 2026 midterm elections.

Furthermore, the CFTC itself operates with a skeletal commission. Selig, nominated by President Trump following the resignation of acting Chair Caroline Pham, remains the agency’s only serving commissioner after an exodus of leadership earlier in 2025. As of this announcement, the White House has not signaled plans to nominate additional commissioners. This situation places immense responsibility on Selig and his newly appointed senior advisers to steer the agency’s direction during a potential period of significant legislative change.

What This Means for Crypto Markets and Participants

The strategic hire of a lawyer with Passalacqua’s profile sends clear signals to various market participants:

• For Crypto Firms: It indicates the CFTC is serious about developing a structured regulatory regime. Firms may anticipate more defined rules for trading, custody, and market manipulation in the digital commodity space.
• For Traditional Finance: The move may encourage further institutional engagement by suggesting a move toward clearer, expertise-driven oversight, potentially reducing regulatory ambiguity.
• For Legislators: It demonstrates the CFTC is proactively building internal capability, potentially bolstering arguments that it is the appropriate agency to receive new regulatory powers from Congress.

The appointment is a concrete step beyond rhetoric. It allocates human capital to the problem of crypto regulation. This action suggests that regardless of the pace of legislation, the CFTC under Selig is preparing to act within its existing and potential future authorities.

Conclusion

The appointment of Michael Passalacqua as a senior adviser to the CFTC is a strategically important development in US crypto regulation. It provides the commission with critical, experience-based legal expertise at a pivotal moment. As the agency anticipates an expanded mandate from Congress, this hire equips it to better understand the nuances of blockchain technology, digital asset markets, and the existing regulatory precedents set by sister agencies like the SEC. This move, therefore, is less about a single personnel change and more about the CFTC positioning itself as a knowledgeable and prepared regulator for the future of finance.

FAQs

Q1: Who did CFTC Chair Selig appoint as a senior adviser?
Michael Selig appointed Michael Passalacqua, a former lawyer at Simpson Thacher & Bartlett with extensive experience in cryptocurrency and blockchain legal matters, as a senior adviser to the CFTC.

Q2: Why is Michael Passalacqua’s experience significant for the CFTC?
Passalacqua helped author a letter that led to a key SEC no-action letter allowing state trust companies to custody crypto. His direct experience with this successful regulatory engagement provides the CFTC with invaluable insight for shaping its own policies.

Q3: What does this appointment signal about the CFTC’s plans?
It signals that the CFTC is actively building internal expertise to “future-proof” its approach, specifically in preparation for potential new responsibilities over digital asset spot markets pending from US Senate legislation.

Q4: Who else was appointed alongside Michael Passalacqua?
Chairman Selig also appointed Cal Mitchell, a former Treasury Department official, as a senior adviser, indicating a focus on both specialized crypto law and broader financial policy.

Q5: What is the current state of the CFTC’s leadership?
As of December 2025, Michael Selig is the CFTC’s sole serving commissioner following several departures. The White House has not yet announced nominees to fill the vacant commissioner seats.