Michael Selig chose two persons to be senior advisers. One of them helped with a law firm’s letter that got the SEC to not take action against crypto custodians.
Michael Selig, head of the US Commodity Futures Trading Commission (CFTC), said that a senior consultant with experience in crypto and blockchain lawsuits would be hired.
Selig said in a notification on Tuesday that Michael Passalacqua, who used to work at the international law firm Simpson Thacher & Bartlett, will join the CFTC as a senior consultant. Selig said that Passalacqua had worked on “financial regulatory matters involving crypto assets and blockchain technologies.”
Selig added, throughout his career, Passalacqua served as assistant general counsel at a crypto asset capital markets firm, where he provided advice on a wide range of regulatory and transactional issues related to cryptocurrencies.
Legal Background and SEC No-Action Letter
Simpson Thacher & Bartlett said that Passalacqua helped write a letter that got the US Securities and Exchange Commission to send a no-action letter allowing state-chartered trust organisations to function as crypto custodians. In September, the agency’s Division of Investment Management stated it would not propose taking legal action against advisers who use a state trust business to hold bitcoin.
As the CFTC is ready to take on a bigger role in regulating cryptocurrencies, Selig has hired Passalacqua and former Treasury Department official Cal Mitchell as senior advisers. Selig stated that the commission is trying to “future-proof” its regulatory strategy, pointing to planned US Senate legislation that would give the CFTC a “broad set of new responsibilities” over digital asset markets.
Leadership Gaps at the CFTC
Selig’s comments came after SEC Chair Paul Atkins warned in October that the agency will strive to “future-proof” President Donald Trump’s crypto agenda. Some experts have said that if Democrats win the Senate or House of Representatives in the 2026 elections, they may undo a lot of the president’s policies, including those about digital assets.
Selig is the sole commissioner still working for the agency after a leadership change in 2025. Trump appointed him after Caroline Pham, the prior interim chair, stepped down. As of Tuesday, Trump has not said anything about nominating other Republicans or Democrats to the CFTC.