Mike Selig, currently the SEC’s Chief Counsel of the Crypto Task Force, is President Trump’s new nominee to head the Commodity Futures Trading Commission.
The news comes after Trump formally withdrew Brian Quintenz’s name from consideration on Sept. 30. The Senate Agriculture Committee cancelled a scheduled July 28 vote, at Trump’s request, to advance Quintenz’s nomination to the full Senate.
While the crypto and financial industries largely supported Quintenz, Tyler and Cameron Winklevoss raised concerns to Trump that his nominee was not aligned with the administration’s pro-crypto agenda.
It does not appear this will be an issue with the crypto-forward Selig.
“[Selig] is deeply knowledgeable about financial markets and passionate about modernizing our regulatory approach in order to maintain America’s competitiveness in the digital asset era,” White House A.I. & Crypto Czar David Sacks posted on X on Saturday.
“Mike has not only been instrumental in driving forward the President’s crypto agenda as Chief Counsel of the SEC Crypto Task Force, he also brings deep experience in traditional commodities markets from his time working at the CFTC under former Chairman Chris Giancarlo.”
Mike Selig and prediction markets
While Selig’s stance on prediction markets has not yet been made public or reported, the smart money says he’ll treat the emerging asset class favorably.
Prediction markets are facing mounting legal challenges from states, who assert some of the companies, Kalshi most notably, are operating as illegal sportsbooks in their jurisdictions. Sports accounts for 80-90% of trading volume on Kalshi.
In a social media post replete with buzzwords resonating in prediction market circles, Selig wrote, “With the President’s leadership, a Great Golden Age for America’s Financial Markets and a Wealth of New Opportunities stand before us. I pledge to work tirelessly to facilitate Well-Functioning Commodity Markets, promote Freedom, Competition and Innovation, and help the President make the United States the Crypto Capital of the World.”
John Wang, Kalshi’s Head of Crypto, is optimistic about the potential new leader of the CFTC:
Trump, it seems, is firmly in prediction markets’ corner, and it’s unlikely he would bring a nominee to the table who plans to impede their progress.
A week before the President’s inauguration, Kalshi announced that Donald Trump Jr. had joined the company as a strategic advisor. In August, Polymarket announced that 1789 Capital, Trump Jr.’s VC firm, made a strategic investment in the crypto-based exchange.
Beyond his son’s interest, President Trump’s affinity toward prediction markets also lies with the fact that, in contrast to polls, Kalshi and Polymarket priced Trump as the favorite to beat Kamala Harris in the 2024 Election.
Quintenz and Kalshi
The prospect of Quintenz leading the CFTC boded well for Kalshi and other prediction markets. Quintenz gave no indication the agency would restrict the types of trades prediction markets can offer, including sports event contracts. In fact, he said, as head of the CFTC, he would be responsible for defending prediction markets against legal action by states.
But, in addition to the perception that Quintenz would have been too conservative on crypto, his seat on Kalshi’s board of directors also raised concerns about a potential conflict of interest.
While Quintenz promised to step down from the Kalshi board once confirmed, Kevin Webb – who was set to be Quintenz’s chief of staff at the CFTC – requested a “briefing on confidential matters” with the agency in June, The Closing Line reported. The emails sent by Webb were viewed as too-close-for-comfort for a Kalshi board member and the agency he was nominated to oversee.
We’ll learn more about Selig in the coming days, but reading the tea leaves, we expect a prediction market-friendly nomination.
