Welcome to US Crypto News Morning Briefing. A critical overview of the most important developments in cryptocurrencies of the day.
Let’s have some coffee. As the U.S. government moves ever closer to a shutdown, we hear whispers from the West hinting at a strategic crypto move that could quietly redraw the dynamics between the digital asset sector and U.S. financial regulators.
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Today’s crypto news: Shutdown deepens as White House approaches surprise selection of crypto regulator
The White House is reportedly in the process of nominating Mike Selig, chief advisor of the SEC Cryptographic Task Force, to head the CFTC (Commodity Futures Trading Commission). The move could reshape U.S. crypto regulation just as Washington is on the brink of a record government shutdown.
Two people familiar with the matter told Crypto in America that Mr. Selig is the top candidate to replace controversial former CFTC Chairman Brian Quintenz, and that a formal review of the additional commissioner role is underway.
The government aims to restructure the five-member CFTC and unify oversight between the SEC and CFTC amid growing calls for a consistent digital asset framework.
“There is no one better suited to harmonize the CFTC and the SEC in cryptocurrencies and beyond than Mike Selig,” Ripple Chief Legal Officer Stu Alderotti said in a statement.
In fact, Selig may understand both sides of the regulatory fence, and his background across both agencies could ultimately help reduce duplicative oversight.
A former CFTC Secretary to Chris Giancarlo and an advisor to SEC Chairman Paul Atkins, he went on to private practice at Perkins Coie and Wilkie Farr & Gallagher, advising on blockchain and token regulation.
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His appointment could therefore be taken as a positive signal for the crypto industry, potentially bridging the deep policy cracks that are paralyzing the industry’s growth in the United States.
“Good to see the newly appointed (hopefully) CFTC liked by those working for blockchain interoperability,” said one user.
Kalsi predicts record length US government shutdown
Meanwhile, the nominee faces a tense political situation. Kalsi’s prediction market currently estimates that the shutdown will last 34.7 days, suggesting it could be the longest in U.S. history.
The prolonged standoff has already halted policy momentum and slowed progress in major cryptocurrencies and macro market updates.
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Meanwhile, in the third week of the government shutdown, the crypto market rebounded slightly from last week’s derivative-led decline as negotiations over military pay and health benefits broke down. Still, the longer the Washington freeze lasts, the greater the risk that the CFTC will delay enforcement guidance, ETF reviews, and release of data important to institutional investors.
Therefore, there are two forces in play. Meanwhile, Congress is deadlocked over the market structure bill. Meanwhile, Kalsi expects the closure to extend beyond 35 days.
Against this backdrop, all eyes are on whether the government will be able to push through Selig’s nomination through a paralyzed government, or whether the next regulatory chapter for cryptocurrencies will remain suspended until Washington resumes business.
today’s chart
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According to Karshi’s prediction market, there is a 61% chance that the shutdown will last more than 30 days and a 49% chance that it will be extended beyond 35 days.
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Here’s a rundown of US crypto news to follow today.
