Today, virtual currency confirmed Michael Selig’s nomination as chairman of the U.S. Commodity Futures Trading Commission. Meanwhile, crypto investment funds regained momentum last week as investor confidence improved, with Australia’s crypto industry warning that the country’s digital assets bill still needs significant work.
Michael Selig Approves CFTC Appointments, Faces CFTC Leadership Absence
U.S. Securities and Exchange Commission (SEC) official Michael Selig announced that President Donald Trump has nominated him to chair the Commodity Futures Trading Commission (CFTC) because of his focus on crypto policy. The move still requires Senate approval and comes as the agency is operating with several open positions.
In a Saturday
Selig’s nomination, which was not on the Congressional Record or in any official White House announcement at the time of publication, reiterated President Trump’s goal of making the United States a “crypto capital.”
The nominations were announced as the U.S. government shutdown enters its fifth week after Republican and Democratic members of Congress have been unable to agree on a funding bill, citing concerns about health care cuts and subsidies.
While the Senate can pass legislation during the shutdown, including a possible digital asset market structure bill, lawmakers’ priority will likely be a continuing resolution to fund the government.
Pham has been the only member of the CFTC Commission’s five-member Leadership Committee since the resignation of CFTC Commissioner Christine Johnson in September, and has announced her intention to leave the regulatory commission after her successor is confirmed by the Senate. As of Monday, the Senate had not set a confirmation hearing for Selig.
From outflows to inflows: Bitcoin ETP rises amid surprising economic conditions
Cryptocurrency investment products regained momentum last week as investor confidence improved following weaker-than-expected US inflation data.
Cryptocurrency exchange traded products (ETPs) saw inflows of $921 million last week, more than offsetting the previous week’s outflows of $513 million, CoinShares reported on Monday.
James Butterfill, head of research at CoinShares, said the main driver of the bullish trend in the crypto fund market is renewed confidence in further U.S. interest rate cuts, supported by the weaker-than-expected Consumer Price Index (CPI) data released on Friday.
The consumer price index rose 0.3% in September, bringing the annual inflation rate to 3%, both lower than expected.
“The ongoing U.S. government shutdown and the resulting lack of important macroeconomic data has left investors with little guidance on the direction of U.S. monetary policy,” Butterfill wrote, adding that the CPI data helped restore hopes for further rate cuts.
Bitcoin (BTC), which was the main source of outflows a week ago, almost completely recouped its losses with $931 million in inflows last week.
Ether (ETH) recorded total outflows of $169 million for the first time in five weeks, with consistent daily outflows throughout the week. “Despite this, 2x leveraged ETPs remain popular,” CoinShares’ Butterfill noted.
Australia’s crypto industry says more needs to be done in drafting legislation
Australia’s crypto industry has largely supported the government’s crypto bill announced last month to extend the Financial Sector Act to the sector, but in a consultation with Treasury that concluded on Friday, the Albanon government said the law needed further clarity.
“As it stands, the bill leaves several important questions unanswered,” said Caroline Bowler, former CEO of cryptocurrency exchange BTC Markets. “We support the government’s intention to bring structure to the digital asset sector. But the structure must be clear.”
Cryptocurrency exchange Swiftx said in a consultation submission obtained by Cointelegraph that the law currently allows the Treasury Department and regulators a “high degree of discretion” to impose “fundamental changes.”
It added that the bill does not provide sufficient clarity on how local platforms can legally source liquidity from offshore exchanges, raising concerns that licensed financial advisers will no longer be able to advise on cryptocurrencies.
Bowler added that the law introduces multiple licenses “without clearly articulating the benefits to consumers or the specific risks it seeks to address.”
Vakul Talwar, Crypto.com’s general manager for Australia, said the government should try to amend and introduce the bill “as soon as possible”, predicting this could happen as early as March.