U.S. Senator Tommy Tuberville (R-AL) engaged with Mike Selig, President Trump’s nominee for chairman of the Commodity Futures Trading Commission (CFTC), during a confirmation hearing before the Senate Agriculture, Nutrition, and Forestry Committee.
During their discussion, Tuberville raised concerns about the efficiency of the CFTC in processing licenses and serving market participants. He stated: “Thank you, Mr. Chairman. Mr. Selig—congratulations on your nomination. A common complaint that I hear from participants in the markets is that CFTC has been failing to do the basic blocking and tackling of its core responsibilities. Obtaining a license from the CFTC has become significantly more costly and time consuming. How do you plan to restore the CFTC’s reputation along these lines?”
Selig responded by emphasizing his experience in private practice and highlighted issues with current regulatory practices at the agency: “Thank you, Senator, and I really enjoyed our time in your office yesterday talking through these and other issues. You raise a very important issue at the CFTC. Spending many years in private practice, working with clients that want their applications processed, that want to get answers on their very important questions—it’s vitally important that the CFTC gives the attention that these market participants deserve to the market participants. As I mentioned in my opening statement, the staff regulation by enforcement and the rule by unwritten law through interpretive guidance that’s not provided in any sort of written form what we call law and many respects and through no action letters really is unacceptable. And so, we need the staff to work together with our applicants, with our registrants to get their businesses going. If confirmed, my job is to get the agency running like a business to really make sure that applications come in. They’re processed efficiently and quickly so people can go on with their business. And that’s gonna be a key priority of mine. I also intend to evaluate the processes in place currently within the commission to ensure that they’re efficient. If there are steps that are unnecessary, we’ll take them out. If there’s things we need to be doing, we’ll add them into the process, but I wanna make sure that people aren’t waiting six months for a phone call from the staff.”
Tuberville then asked Selig if he would commit to addressing issues restricting cross-border trade flows in over-the-counter markets.
Selig replied: “Senator, thank you. That’s another important issue before the commission. I think it’s critical that we have substituted compliance in place where it makes sense. We need to deregulate with our allies, make sure that they’re also allowing for our market participants to enter their markets. We should do the same. So, I do think it’s vitally important to remove these blockages to over-the-counter derivatives markets.”
The senator also questioned how Selig would balance enforcement actions while providing clear guidance for innovators seeking compliance.
Selig said: “Senator, I think as I mentioned earlier, we’ve just massively overregulated the real-world economy. We’ve pushed a lot of our innovators offshore with regulation by enforcement, smothered them in red tape, really not allowed them to go do the things they do best—be creative and build great businesses…I would create make sure that our forms are really efficient and able to be…really easily understood and work with…stakeholders…and I’d love to work with this committee on these issues as well.”
Tuberville brought up concerns from Bitcoin miners regarding tax treatment compared with traditional commodities.
He said: “I’d like to hear your thoughts on something…Bitcoin—and as crypto is—a commodity…if we sell corn…we pay taxes on it when we sell…But when a Bitcoin is mined from a miner IRS is standing next door ready to get their money from this Bitcoin…”
Selig responded: “Well Senator,…blockchain enables all new modes of commerce…where people can participate in these networks like Bitcoin network earn rewards …We should have them built in United States….In terms of some of these areas …beyond scope of CFTC’s remit around tax …it’s vitally important …we work together with Treasury …to make sure we’re providing right incentives…”
Tuberville concluded by noting concerns about immediate taxation for miners versus sellers of other commodities.
Senator Tuberville represents Alabama as part of several Senate committees including Armed Services; Agriculture; Veterans’ Affairs; Health Education Labor & Pensions (HELP); and Aging.
