Short Description
Michael Selig of the CFTC appoints crypto expert Michael Passalacqua as a senior adviser, signaling a potential regulatory shift in crypto custodianship and digital asset governance.
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4 minutes, 30 seconds
Main Article
In a significant move affecting the landscape of cryptocurrency regulation, Michael Selig, the chair of the U.S. Commodity Futures Trading Commission (CFTC), has announced the appointment of Michael Passalacqua as a senior adviser. With extensive experience in litigating crypto and blockchain cases, Passalacqua’s role is poised to influence the future of crypto custodianship and regulation as the CFTC fortifies its oversight amid evolving digital asset markets.
Passalacqua previously served as an associate at the esteemed international law firm Simpson Thacher & Bartlett, where he was involved in pivotal regulatory matters related to crypto assets. His expertise includes advising a crypto asset capital markets firm, where he tackled various regulatory and transactional aspects concerning digital currencies. Notably, he played a key role in developing a letter that culminated in the U.S. Securities and Exchange Commission (SEC) issuing a no-action letter, which authorized state-chartered trust companies to act as crypto custodians. This decision opened pathways for advisory firms to utilize state trust companies without facing enforcement actions, marking a milestone in crypto regulatory frameworks.
Selig’s strategic appointment of both Passalacqua and former Treasury official Cal Mitchell signals a proactive approach by the CFTC in preparing for more extensive responsibilities over digital assets. The agency’s aim is to “future-proof” its regulatory strategies in anticipation of pending U.S. Senate legislation that would broaden its authority and scope. As Selig mentioned, the adjustments come as various stakeholders, including SEC Chair Paul Atkins, emphasize the necessity of adapting regulatory approaches to support innovation while ensuring compliance in the fast-growing digital asset sector.
As the CFTC navigates new responsibilities, the evolving climate around cryptocurrency regulation is critical, especially considering the political landscape. Experts express concerns that shifts in the Senate or House of Representatives following the 2026 elections could reverse existing regulations, making it imperative for regulatory bodies to act decisively now.
Short Summary
Michael Selig’s recent appointments at the CFTC reflect a commitment to strengthen regulatory oversight over digital assets and crypto custodianship. With experienced advisers like Michael Passalacqua on board, the agency is gearing up for an expansive role in the future of cryptocurrency regulation amidst changing political dynamics.
