    [Senate Hearing 119-214]
    [From the U.S. Government Publishing Office]

                                                            S. Hrg. 119-214

                   NOMINATION OF MICHAEL SELIG TO BE CHAIR-
                    MAN AND COMMISSIONER OF THE COMMODITY
                    FUTURES TRADING COMMISSION
    =======================================================================

                                    HEARING

                                   BEFORE THE

                           COMMITTEE ON AGRICULTURE,
                            NUTRITION, AND FORESTRY

                              UNITED STATES SENATE

                        ONE HUNDRED NINETEENTH CONGRESS

                                 FIRST SESSION

                                   __________

                               November 19, 2025

                                   __________

                           Printed for the use of the
               Committee on Agriculture, Nutrition, and Forestry

    [GRAPHIC NOT AVAILABLE IN TIFF FORMAT]

                      Available on http://www.govinfo.gov/

                                    __________

                       U.S. GOVERNMENT PUBLISHING OFFICE
    61-997 PDF                  WASHINGTON : 2025

    -----------------------------------------------------------------------------------

               COMMITTEE ON AGRICULTURE, NUTRITION, AND FORESTRY

                        JOHN BOOZMAN, Arkansas, Chairman
    MITCH McCONNELL, Kentucky            AMY KLOBUCHAR, Minnesota
    JOHN HOEVEN, North Dakota            MICHAEL F. BENNET, Colorado
    JONI ERNST, Iowa                     TINA SMITH, Minnesota
    CINDY HYDE-SMITH, Mississippi        RICHARD J. DURBIN, Illinois
    ROGER MARSHALL, Kansas               CORY BOOKER, New Jersey
    TOMMY TUBERVILLE, Alabama            BEN RAY LUJAN, New Mexico
    JAMES C. JUSTICE, West Virginia      RAPHAEL WARNOCK, Georgia
    CHARLES GRASSLEY, Iowa               PETER WELCH, Vermont
    JOHN THUNE, South Dakota             JOHN FETTERMAN, Pennsylvania
    DEB FISCHER, Nebraska                ADAM SCHIFF, California
    JERRY MORAN, Kansas                  ELISSA SLOTKIN, Michigan

                   Fitzhugh Elder IV, Majority Staff Director
                      Corey Weber, Majority Chief Counsel
                        Jessica L. Williams, Chief Clerk
                    Lauren Santabar, Minority Staff Director
                     Chu-Yuan Hwang, Minority Chief Counsel

                               C O N T E N T S

                                  ----------

                          Wednesday, November 19, 2025

                                                                       Page

    Hearing:

    Nomination of Michael Selig to be Chairman and Commissioner of
      the Commodity Futures Trading Commission.......................     1

                                  ----------

                        STATEMENTS PRESENTED BY SENATORS

    Boozman, Hon. John, U.S. Senator from the State of Arkansas......     1
    Klobuchar, Hon. Amy, U.S. Senator from the State of Minnesota....     4

                                    WITNESS

    Selig, Michael, of Florida, to be Chairman and Commissioner of
      the Commodity Futures Trading Commission.......................     5
                                  ----------

                                    APPENDIX

    Prepared Statements:
        Selig, Michael...............................................    30

    Document(s) Submitted for the Record:
    Boozman, Hon. John:
        Agricultural Industry Stakeholders in support of Michael
          Selig, letter of support...................................    32
        Crypto Council for Innovation in support of Michael Selig,
          letter of support..........................................    34

    Selig, Michael:
        Committee questionnaire, Office of Government Ethics
          Executive Branch Personnel Public Financial Disclosure
          Report and 5-day letter filed by Michael Selig.............    36

    Question and Answer:
    Selig, Michael:
        Written response to questions from Hon. Amy Klobuchar........    70
        Written response to questions from Hon. Mitch McConnell......    71
        Written response to questions from Hon. Cindy Hyde-Smith.....    72
        Written response to questions from Hon. Charles Grassley.....    73
        Written response to questions from Hon. Raphael Warnock......    73
        Written response to questions from Hon. John Fetterman.......    75
        Written response to questions from Hon. Elissa Slotkin.......    77

      NOMINATION OF MICHAEL SELIG TO BE CHAIRMAN AND COMMISSIONER OF THE
                      COMMODITY FUTURES TRADING COMMISSION

                                  ----------

                          WEDNESDAY, NOVEMBER 19, 2025

                                            U.S. Senate
              Committee on Agriculture, Nutrition, and Forestry
                                                        Washington, DC.
        The Committee met, pursuant to notice, at 3:04 p.m., in
    Room G50, Dirksen Senate Office Building, Hon. John Boozman,
    Chairman of the Committee, presiding.
        Present: Senators Boozman [presiding], Hoeven, Hyde-Smith,
    Tuberville, Grassley, Fischer, Klobuchar, Bennet, Smith,
    Booker, Lujan, Warnock, Fetterman, Schiff, and Slotkin.

       STATEMENT OF HON. BOOZMAN, U.S. SENATOR FROM THE STATE OF
     ARKANSAS, CHAIRMAN, U.S. COMMITTEE ON AGRICULTURE, NUTRITION,
                              AND FORESTRY

        Chairman Boozman. It is my privilege to call the hearing to
    order. I thank my colleagues for joining us today.
        We will consider the nomination of Mr. Michael Selig to be
    Chairman and Commissioner of the Commodity Futures Trading
    Commission. Mr. Selig, congratulations on your nomination, and
    thank you very much for your willingness to serve and your
    family. These are always family affairs. Again, we appreciate
    you very much.
        As this Committee knows well, the CFTC is unique in that it
    is the only federal financial regulator that oversees the
    agriculture and energy risk management markets, the resiliency
    of which are critical to our commodity supply chains. Well-
    regulated liquid and resilient derivatives markets help our
    producers manage risk ranging from interest rate uncertainty,
    commodity pricing volatility, and natural disasters. In times
    when uncontrollable risk can wipe away years of hard labor,
    futures markets are an essential risk management tool in the
    toolbox.
        The CFTC has historically taken a pragmatic, principles-
    based approach to regulation and is engaged in constructive
    dialog with regulated entities and market participants. This
    approach, combined with diligent policing of the cash and
    derivatives commodity markets, has resulted in trust in the
    CFTC and the deepest, most liquid derivatives market in the
    world. The CFTC's regulatory regime is time-tested and has
    helped the derivatives market serve as a gold standard in terms
    of withstanding external shocks, and the CFTC staff have
    developed deep expertise of the derivatives market.
        The CFTC has seen the markets it regulates evolve over
    time. Emerging markets such as crypto derivatives, and event
    contracts have grown in size, and Congress, including this
    Committee, is actively working on granting CFTC authority to
    regulate the spot digital commodity markets. Turning attention
    to the nuances that come with emerging markets while ensuring
    focus on agricultural risk management markets is essential, and
    it is my expectation that CFTC leadership will strike this
    balance.
        I want to repeat that I have said multiple times before
    this Committee, the CFTC is the right agency to regulate spot
    digital commodity trading. The CFTC and only the CFTC should
    regulate the trading of digital commodities. This is because
    only the CFTC understands the unique characteristics of
    commodities and commodity-based contracts.
        While the CFTC has the right regulatory approach,
    expertise, and skillset to handle this new responsibility, it
    is up to Congress to grant the agency this new authority to
    regulate spot digital commodity trading. Failure by Congress to
    do so will leave U.S. consumers vulnerable to bad actors and
    will keep the U.S. behind the rest of the world. Though a
    regulatory framework for spot digital commodities is yet to be
    authorized by Congress, the markets and underlying technology
    are fast at work. Absent a comprehensive U.S. regulatory
    framework, bad actors will continue to go unchecked, and
    legitimate entities will be disincentivized from participating
    in U.S. markets. All the while, U.S. consumer participation
    will continue to grow, as will the risk faced by consumers.
        The Committee has an opportunity to advance its portion of
    the regulatory framework that protects U.S. customers, also
    allows U.S. businesses to grow, and recognizes the importance
    of innovative blockchain technology and fundamental principles
    like the right to self-custody. I want to thank Senator Booker
    for his partnership on our bipartisan discussion draft, and I
    look forward to working with him and the rest of the Committee
    to advance a bipartisan proposal out of this Committee. The
    time to act is now, and I look forward to working with each of
    you toward advancing the goal.
        As this Committee moves forward with its bipartisan
    proposal to grant CFTC authority, I am eager to work with Mr.
    Selig and CFTC on ensuring we get this right. It is so, so very
    important. I look forward to hearing from Mr. Selig on these
    issues. Again, congratulations on your nomination.
        Senator Klobuchar is going to join us in a bit. You will
    see that there is just all kinds of stuff going on right now,
    and so we are going to have people coming and going, so she
    will join us momentarily.
        We will now proceed with our witness introduction.
    Following the introduction, the Ranking Member will be around,
    and we will recognize her at that time.
        I now recognize Chairman Christopher Giancarlo, who will
    introduce our nominee, Mr. Michael Selig.
        Mr. Giancarlo. Thank you, Chairman Boozman, Members of the
    Committee. It is an honor to be before you once again, if I may
    say. I have had this honor several times in the past, both as a
    nominee for Commissioner and as Chairman, and I am joined here
    today by a number of other distinguished former Commissioners
    and Chairs who have also had the honor of appearing before this
    Committee.
        As they know and I know, this Committee often meets in a
    much smaller room, a room that really features what I think one
    of the most distinctive features of any of the architecture of
    the Senate buildings, and that is a simple table. This
    Committee, as you know, meet around a table in the same way
    that American families, American farmers, American producers
    meet around their often kitchen table to discuss issues of
    importance to them, and I think it is one of the hallmarks of
    this Committee that you do the same.
        I am here today to introduce Michael Selig. He served for
    me when I was at the CFTC as a law clerk, and I got to know him
    then back in 2015 as someone of just really remarkable clarity,
    certainty, evenhandedness. He was a fine colleague right from
    the beginning and someone who immediately dove into our work.
    Over the next 10 years, he became an outstanding lawyer in the
    area of the Commodities Exchange Act, so much so that in 2022,
    when I had joined the law firm of Willkie Farr & Gallagher, I
    invited Mike to join me there. He came on and quickly
    established himself and became a partner in the firm, no easy
    task in a large Manhattan law firm to do, and he did it with
    the same effortlessness and the same clarity of vision that he
    had when he served for me as a law clerk.
        I was delighted earlier this year when he stepped down from
    the firm, not that he stepped down, but that he went to the SEC
    and joined the Crypto Task Force and now serves as an advisor
    to Chairman Paul Atkins.
        The Mike Selig that you will be hearing from today is
    someone who I think you will find treats people with a fairness
    and an evenhandedness that is very welcome in a government
    official. He is someone that is hardworking, that is dedicated
    to coming up with the right outcomes by first hearing every
    point of view and getting to a balanced result. He is someone
    who has a great deal of respect for American financial markets,
    especially the markets overseen by the CFTC. He recognizes that
    one of the underpinnings of our strong American economy is
    these robust and strong markets, but also markets that are very
    well regulated, and he has a great deal of respect for the role
    of regulation.
        Most importantly, he is somebody who is really determined
    to serve the producers, the farmers, the ranchers, and the
    everyday consumers that depend on these markets to serve their
    needs, to hedge their risk in production. He is someone who is
    going to follow the example of his predecessors and make sure
    he gets around to the states that are represented here to make
    sure that producers of those states know that these markets are
    serving their needs, and in areas where perhaps they are not,
    where he can address those needs when he comes back to
    Washington.
        Finally, I will just leave you with this. As someone who
    sat in that seat as Chairman of the agency, I think I know what
    it takes to be successful, to serve the needs of America's
    important constituents, and I know that Mike Selig has all the
    characteristics that will allow him to succeed in this
    important role.
        With that, I thank you for this opportunity philosophically
    to be at your table, even though we are not in your hearing
    room today, and I wish you a good hearing. Thank you very much.
        Chairman Boozman. Well, thank you, Mr. Chairman.
        Senator Klobuchar has joined us, and I appreciate her
    flexibility in helping us get this arranged today, and these
    are important positions.
        Senator Klobuchar. Thank you.
        Chairman Boozman. With that----

      STATEMENT OF HON. KLOBUCHAR, U.S. SENATOR FROM THE STATE OF
                               MINNESOTA

        Senator Klobuchar. Okay. Well, a nominee can wait through
    my remarks here for a few minutes. I appreciate it.
        Thank you, Mr. Chairman, for being here. Thank you,
    Chairman Boozman.
        I would also like to welcome your wife, Ariel. I know she
    is here. Where? Right there. Very good. Your parents.
        I want to welcome back, of course, the Chairman, who has
    appeared many times before this Committee, as well as CFTC
    Acting Chairman Pham and former CFTC Commissioners Walt Lukken
    and Scott O'Malia, as well as Jill Sommers, so thank you for
    being here.
        The role of the Commodity Futures Trading Commission, as we
    talked about yesterday, could not be more critical, as on-
    again, off-again tariffs, rising input costs, and market
    fluctuations have created a lot of chaos for farmers and
    businesses. They need a well-functioning and reliable
    derivatives market to help them manage their risk.
        In addition to traditional commodities markets, the CFTC
    has also seen significant growth in new markets, such as those
    for event contracts, with trading volumes going from
    essentially nonexistent to billions of dollars per month. This
    Committee is currently contemplating a discussion draft of
    legislation that would, for the first time, give the CFTC
    regulatory authority over spot markets in digital assets, as
    they also are dramatically increasing in trading volume.
        In addition to these new technologies and new markets, the
    CFTC is also confronting broader shifts in market structure,
    including the growing influence of non-traditional
    intermediaries, the rise of vertically integrated operations,
    and moves to increased trading hours. These developments raise
    important questions about the scope of the CFTC's oversight and
    its ability to respond swiftly and effectively to risks in
    complex and fast-moving markets.
        To tackle these challenges head-on, I believe it is in the
    public interest that the CFTC not only have a confirmed
    Chairman, but also a fully functioning Commission. That would
    include, of course, a Democratic appointee, in fact, two
    Democratic appointees. The CFTC has operated much of the past
    year without a full complement of bipartisan Commissioners and
    has been operating for months with only an acting Chairman.
    This uncertainty surrounding the leadership at the CFTC has
    only created more chaos for people who rely on the CFTC.
        Mr. Selig, as you and I discussed when we met, it is also
    essential that the CFTC have the institutional capacity, both
    in staffing and resources, to fulfill its mandate in the face
    of what are existing challenges that have been there for a
    while and also these emerging challenges and opportunities.
    When the CFTC has lost about 20 percent of its staff--
    obviously, you were not there--but when that has been
    happening, it is critical that you ensure that the CFTC is able
    to maintain the U.S. derivatives market position as the deepest
    and most liquid in the world and that the CFTC can provide
    robust protections for consumers, farmers, and businesses
    across the country.
        Thank you very much, Mr. Selig. Congratulations on your
    nomination, and I look forward to the hearing.
        Chairman Boozman. Thank you, Senator Klobuchar. With that,
    let's administer the oath. Please stand and raise your right
    hand.
        Do you swear or affirm that the statement you are about to
    provide is the truth, the whole truth, and nothing but the
    truth, so help you God?
        Mr. Selig. I do.
        Chairman Boozman. Do you agree that, if confirmed, you will
    respond to requests to appear and testify before any duly
    constituted Committee of the Senate?
        Mr. Selig. I do.
        Chairman Boozman. Very good. With that, you are recognized
    for your statement.

      STATEMENT OF MICHAEL SELIG, OF FLORIDA, TO BE CHAIRMAN AND
        COMMISSIONER OF THE COMMODITY FUTURES TRADING COMMISSION

        Mr. Selig. Chairman Boozman, Ranking Member Klobuchar, and
    distinguished Members of the Committee, thank you for the
    opportunity to appear before you today as President Trump's
    nominee for Chairman of the Commodity Futures Trading
    Commission. I am grateful to the President for placing his
    trust and confidence in me to lead the CFTC during this
    historic time. Of course, I want to thank the Members of the
    Committee for taking the time to meet with me ahead of this
    hearing. If confirmed, I look forward to working with all of
    you to pursue the CFTC's important mission in promoting the
    integrity, resilience, and vibrancy of America's commodity
    derivatives markets.
        It is an honor to have former Commissioners and Chairmen in
    the room today. Thank you for your guidance, wisdom, and
    mentorship. I am grateful to my best friend and wife, Ariel,
    who is here today, for her unwavering support.
        I would like to thank my parents, Robert and Sandy, for
    joining me here. My parents impressed upon me the importance of
    hard work, and they instilled in me a deep love for the United
    States and its values. They inspired me with stories of my
    family's earlier generations, who migrated here in the 1800s,
    fought for the Union in the Civil War, served in both World
    Wars and the Korean War, and pursued the American Dream. My
    father was a district attorney and president of his local
    school board. He ingrained in me the immense value of public
    service.
        Early in my career, I served as a law clerk for CFTC
    Commissioner Chris Giancarlo, who just spoke. He emphasized to
    me the importance of derivatives markets to all Americans. Our
    Nation's farmers, ranchers, energy producers, and commercial
    businesses rely on futures and swaps for price discovery and
    risk management. Robust markets for derivatives that enable
    hedgers to lock in prices help ensure that the cost of
    groceries, transportation, electronics, and all kinds of goods
    and services do not fluctuate wildly for American consumers
    each day. If confirmed, I would welcome the vital
    responsibility to oversee the stability and security of these
    markets and protect consumers from fraud and manipulation.
        During my years in private practice, I advised a wide range
    of market participants, subject to regulation by the CFTC. From
    commercial end users, such as agriculture, livestock, and
    energy businesses, to financial institutions like futures
    commission merchants, swap dealers, and exchanges, to new
    entrants, including digital asset firms. I have seen firsthand
    how regulators, unaware of the real-world impact of their
    actions and zeal for regulation by enforcement, can drive
    businesses offshore and smother entrepreneurs in red tape. I
    recall helping an agricultural firm that was forced to divert
    significant time and resources from its business to defend
    itself in an extensive investigation for harmless errors in its
    swap data reporting.
        Every day Americans pay the price for these regulatory
    failures. If confirmed, I am committed to instituting
    commonsense, principles-based regulations that facilitate well-
    functioning markets and keep pace with the rapid speed of
    innovation.
        I have long believed in the mission of public service. This
    year, I was honored to serve as Chief Counsel of the Securities
    and Exchange Commission's Crypto Task Force and Senior Advisor
    to Chairman Paul Atkins. In this role, I have worked diligently
    to modernize the SEC's regulations to reflect new and evolving
    technologies. I have participated in the President's Working
    Group on Digital Asset Markets and advised on a broad swath of
    derivatives policy matters, including coordination with the
    CFTC.
        Now, we are at a unique moment in the history of our
    financial markets. A wide range of new technologies, products,
    and platforms are emerging. Vertical integration is becoming
    more prevalent, and we are seeing unprecedented retail
    participation in the commodity markets. The digital asset
    economy alone has grown from a mere curiosity to a nearly $4
    trillion market. It is the American spirit to conquer new
    frontiers. All Americans stand to benefit from a government
    that embraces technology, productivity, and entrepreneurship.
    Together, we can seize this generational opportunity to
    modernize and future-proof our approach to financial regulation
    and ensure that the great innovations of tomorrow are made in
    America.
        If confirmed, I commit to you that the CFTC will have a
    steady hand at the wheel. If confirmed, I pledge to work
    tirelessly with this Committee to facilitate well-functioning
    markets, promote competition and innovation, and ensure that
    the CFTC remains a world-class regulator in this golden age of
    American financial markets.
        Thank you for your time today, and I look forward to your
    questions.
        [The prepared statement of Mr. Selig can be found on pages
    30-31 in the appendix.]
        Chairman Boozman. Thank you, Mr. Selig.
        Before I ask my questions, I would like to put letters of
    support from agriculture and other stakeholders for Mr. Selig's
    nomination into the record. Without objection, so ordered.
        [The letters can be found on pages 32-35 in the appendix.]
        Chairman Boozman. Mr. Selig, as this Committee deliberates
    on granting the CFTC spot digital commodity regulatory
    authority, what key considerations should we weigh, and why do
    you feel the CFTC is the right regulator for spot digital
    commodity trading?
        Mr. Selig. Thank you, Senator, and thank you for the time
    that we spent in your office discussing these matters. I think
    it is a critical opportunity for this Committee and for our
    country to move forward with digital asset market structure
    legislation. It has been a priority of the President and, of
    course, is something that is great for this country.
        You know, we have so many entrepreneurs and builders and
    developers that have been pushed offshore, and this has been
    due to the lack of clarity. We need clear, simple guidelines.
    We need consumer protection, and we need to stop with the
    regulation by enforcement. I think this is a real opportunity
    to develop a framework that can allow for software developers
    to thrive, for new exchanges to crop up that are going to
    protect investors and have the types of controls that you would
    expect in an exchange, and make sure that we have the right
    disclosure and requirements that we have typically in our
    financial markets. I am excited about the opportunity to work
    with your Committee on that.
        Chairman Boozman. Very good. As the Committee deliberates
    granting the CFTC spot digital regulatory authority, how should
    we think about DeFi in ensuring that activities with respect to
    technology are not subject to inappropriate intermediary
    registration regimes?
        Mr. Selig. Thank you, Senator. As I mentioned, I think
    there is this issue of regulation by enforcement, and sometimes
    we take a one-size-fits-all approach to all types of financial
    products and services, but really, blockchain enables such a
    broad swath of new types of products, services, applications,
    and so it may not make sense in many cases to apply financial
    regulation, for example, to a video game app that runs on a
    blockchain.
        I think when we are thinking about DeFi, it is something of
    a buzzword, but really we should be looking to on-chain markets
    and on-chain applications and thinking about the features of
    these applications, as well as where there is an actual
    intermediary involved, where we have some operator or
    administrator. In many cases that may not be, and so we have to
    think about the best approach, and I look forward to working
    with your office to figure that out.
        Chairman Boozman. The next question that I am going to ask
    is really important and certainly very, very important to this
    Committee. Can you describe your experience working with
    agricultural stakeholders and how, if confirmed, you will
    balance emerging market issues with maintaining focus on
    agriculture risk management markets?
        Mr. Selig. Senator, I am very glad to have the support of
    about 20 of the large trade groups in the agricultural space,
    and agriculture is a very important constituency within this,
    you know, of course, the Agriculture Committee, as well as the
    CFTC. America's farmers and ranchers really are the backbone of
    this country, and they keep Americans fed and nourished every
    day, so it is very important that they have proper risk
    management tools available to them that are regulated by market
    regulators like the CFTC.
        My commitment to the agricultural world is that I will
    always be an open door to hear your issues. I am committed to
    being the sponsor and overseeing the Agricultural Advisory
    Committee. As Chris Giancarlo mentioned in his introduction, I
    plan to take a tour across the country and meet with the ag
    community in each of your states, as well as many other states.
    I think it is really important to be on the ground and really
    see where everything is done and understand the businesses. As
    being in private practice for many years, I really find it so
    valuable to understand everyone's business.
        I also plan to have a dedicated advisor in my office that
    will be an agriculture advisor that will advise me on these
    issues day to day, and, of course, I hope to restore the
    Agriculture Convention that has been historically in Kansas
    City and plan to bring it back.
        Chairman Boozman. Very good. Can you describe the
    importance of principle-based regulation and how it fosters
    innovation?
        Mr. Selig. Senator, yes. Principles-based regulation came
    out of the Commodity Futures Modernization Act, and it has
    really been a great innovation in regulation. It has allowed
    for exchanges and market participants to have a lot of
    flexibility in how they comply with certain core principles
    that are really important to ensure that our markets have
    integrity, that they are resilient, that they are vibrant, that
    we protect investors from fraud and manipulation. The general
    guidelines, for example, protecting against fraud and
    manipulation, are there, but the exchanges and market
    participants are able to figure out the best way to comply, and
    that allows for innovation in the business sector. It allows
    for innovation, with the regulators figuring out the best way
    to help them get to a compliant state.
        Chairman Boozman. Thank you. Senator Klobuchar.
        Senator Klobuchar. Thank you very much, Mr. Chairman.
        I will start with what is on the minds of a lot of our
    agriculture producers, farmers, because, as I discussed in my
    opening, the CFTC is dealing with markets and financial
    instruments that are getting increasingly complex. The core
    mission is to ensure that the markets farmers and ranchers use
    to manage their risk are safe, reliable, and function as
    intended.
        Mr. Selig, how do you envision the CFTC continuing to
    preserve these markets as a practical and accessible risk
    management tool for farmers and other end users?
        Mr. Selig. Thank you, Ranking Member. I really enjoyed the
    time in your office getting to discuss many of these issues.
    They are really important to everyday Americans. As we
    discussed, overregulation can really trickle down to the
    everyday consumer. Many of us are getting ready to head home
    for the holidays, and, you know, the price of airfare can
    fluctuate based on jet fuel, but luckily, we are able to lock
    in those prices as businesses and hedge that risk. It is also
    something that affects the grocery store every day, so it is
    really important that we have these risk management tools.
        I think it is vitally important that we consider how
    overregulation of the real world, of energy, of agriculture, of
    livestock, of technology, as we are discussing today, as well,
    that has an everyday impact on consumers. My intention is to
    modernize the rule set to make sure we are figuring out what
    works, what does not work, and cutting back on what does not
    work, fixing things that are broken, but not changing things
    that are not broken where it is not necessary.
        I do think it is vitally important that we modernize and
    that we get rid of the lore, the staff lore, the no-action
    letters, all of this kind of unwritten rules of the road, where
    it is really hard for everyday Americans to comply. If we put
    things in writing, we figure out what works, put it through the
    notice and comment process or do it through a staff process,
    but make sure that what we are putting out there is something
    that people can follow, that they understand, and it is able to
    be complied with and not something you need to hire a high-
    priced law firm to figure out.
        Senator Klobuchar. Do you think you can do that with your
    existing resources when you add the potential crypto portfolio
    on some of the new things that are coming your way for
    regulation?
        Mr. Selig. Senator, I am looking forward to getting into
    the seat, and if confirmed, I am really--I am going to take a
    hard look at the resource needs of the agency and hope to do
    that assessment and then get back to your office and work to
    make sure we have the resources to fulfill our critical
    mission.
        Senator Klobuchar. Okay. What specific regulatory tools or
    approaches would you use to ensure that innovation in crypto
    markets does not come at the expense of basic safeguards to
    protect the public?
        Mr. Selig. It is vitally important that we have a cop on
    the beat. It is critical that we cannot have another big loss
    of customer funds, as we have seen with MF Global, Peregrine,
    and most recently FTX. The CFTC has always been a regulator
    that is focused on protecting customer funds, making sure that
    we have appropriate disclosure where required to do so, and
    protecting consumers because, at the end of the day, these are
    critical markets, and they affect, as I mentioned, the price of
    the groceries, as well as, of course, now as we are embarking
    into new digital domains, they could affect things like GPU
    costs and digital asset costs.
        I feel that we have massively overregulated the real-world
    economy, as I mentioned. This affects agriculture, energy,
    crypto, and so much more. If we can figure out what works, what
    does not work, that is going to be the key to unlocking really
    great markets for every individual and making sure that we do
    not constrain our businesses and push them offshore.
        Senator Klobuchar. You represented numerous derivatives and
    crypto clients--we talked about this--while in private
    practice. Tell me, how are you going to deal with conflicts of
    interest, especially when you will be the only person, if
    confirmed, on the Commission?
        Mr. Selig. Senator, of course, I think that is a critical
    issue. Having come from a law firm where I have been practicing
    law for many years, I will always hold myself to the highest
    ethical standards. I have, of course, been through a process
    with the Nonpartisan Office of Government Ethics, as well as
    the ethics staff at the CFTC. I have an ethics agreement that I
    have signed and plan to adhere to all the terms of that. You
    know, as a lawyer, you know, I am very much one that follows
    the guidelines of the contract.
        Senator Klobuchar. Following up on that, because I think it
    is going to be very critical for trust and the like, so there
    are no Democratic members of the CFTC right now. I know you
    cannot appoint them yourself. You have talked about the value
    of minority Commissioners in particularly the leadership they
    can offer in working together. What is your view on the
    importance of preserving the voices of minority Commissioners?
    Will you advocate for the nomination and appointment of a full
    board, including two Democratic Commissioners at the CFTC?
        Mr. Selig. Senator, I do believe that it is very valuable
    to have a diversity of viewpoints. I have always benefited from
    that. My parents, sitting behind me, encouraged me to join the
    high school debate team years ago, and I was always flipping
    back and forth between different issues, and it really does
    pressure test your thinking on things and really force you to
    get to the right side. Oftentimes, you find out you are wrong.
    I do think that is very important, and hope to have a diversity
    of views throughout the building.
        Of course, you know, the President is the one that makes
    these decisions around nominations, but I will work with
    whoever the President chooses to appoint.
        Senator Klobuchar. In addition to the crypto--thank you--
    the crypto coming your way, the volatility that we have seen in
    the ag markets and the like, there has also been growing
    interest in expanding derivatives market trading hours,
    potentially even to 24-7 trading. If the Commission begins to
    allow extended trading hours, what guardrails do you believe we
    need to protect investors and prevent price dislocations,
    especially in lower volume markets like agriculture futures?
        Mr. Selig. As I mentioned in my opening statement, there
    really is this confluence of new technologies and changes in
    our markets that we need to be vigilant about. I hope to work
    with all constituents on these issues and figure out what is
    appropriate for each market. It is not necessarily one size
    fits all, and so, you know, what works for, for example, crypto
    may not work for pork bellies. We really need to look at this
    on a product-by-product, market-by-market basis, and I look
    forward to those discussions both at the Commission, as well as
    with this Committee, if confirmed.
        Senator Klobuchar. Okay. Thank you. I just continue to
    believe if you are given a mandate with--I am out of time
    here--with rulemaking and the like, that you most likely are
    going to need more resources. I just do not know how you keep
    doing what you are doing now, 20 percent down on staff right
    now, and then a new mandate that this will all work. No matter
    how, you know, good your background is or other Commissioners
    that might come before us or when we get the full slate, I
    think that is going to continue to be an issue, and I hope that
    the White House will respect that.
        Thank you very much, Mr. Selig.
        Chairman Boozman. I actually very much agree with that.
        Senator Hyde-Smith.
        Senator Hyde-Smith. Thank you, Mr. Chairman.
        I sure enjoyed our meeting earlier. I appreciate your
    willingness to serve, as I said before, and all the issues that
    we talked about is very important to Mississippi, so I am sure
    we will have a lot to work on together.
        As products and market participants emerge, the agency must
    adapt to rising demands and increasing pressure on its limited
    resources. The Commission deserves recognition for how
    effectively it has managed these emerging duties so far.
    However, the Congress now weighing market structure legislation
    that may expand the CFTC's jurisdiction, the challenges ahead
    are likely to become even more significant.
        My question is, how do you plan to ensure the CFTC remains
    focused on its core mission of protecting hedgers and
    supporting transparent, well-functioning futures markets,
    especially for our farmers and ranchers, while also
    establishing a new regulatory framework and taking an increased
    responsibility for a rapidly evolving digital asset market?
    What makes the CFTC well suited to take on this responsibility?
        Mr. Selig. Thank you, Senator. I, too, very much enjoyed
    our conversation this morning. You know, if the CFTC is not
    doing its job at making sure that our markets are working for
    our agricultural firms, our farmers, our ranchers, our digital
    economy now as well, it is simply not working. We need to make
    sure that these are well-functioning markets. It is my
    responsibility, if confirmed as Chairman, to get that job done.
    I believe that we need to be vigilant in our surveillance
    efforts, in our examination efforts of market participants, and
    make sure that we are policing fraud and manipulation in these
    markets. It is the CFTC's critical responsibility for
    overseeing that these markets are well-functioning and
    efficient, and I take that very seriously and intend to do that
    job.
        As I mentioned in my opening statement, I think some of the
    just massive overregulation of participants, and as we
    discussed this morning, particularly the FCM community, where
    many of America's farmers and ranchers are reliant on these
    entities to access the derivatives markets. If it is too
    expensive for overregulating them and they do not have access,
    they are not going to be able to hedge their risks, and that is
    very concerning. That can result in a lot of volatility in the
    markets, and that can affect everyday consumers. I am committed
    to making sure that these markets are well functioning and that
    appropriate risk management tools are available to our Nation's
    farmers, ranchers, and everybody else.
        Senator Hyde-Smith. Thank you, Mr. Chairman. I have no
    further questions.
        Chairman Boozman. Senator Smith.
        Senator Smith. Thank you, Mr. Chair.
        Welcome to the Committee, Mr. Selig. Welcome to your family
    as well.
        I want to just start by associating myself with the
    questions that Senator Hyde-Smith and Senator Klobuchar asked
    about the big potential change in the mission of the CFTC with
    regard to digital commodities and what that would mean for the
    CFTC if it were to take on that additional challenge. You have
    described at a high level, but could I just press you a bit
    more on this? What do you think it would take? What would be
    the first two or three things that you would do? How would you
    approach this with a little bit more detail as the CFTC takes
    on this, you know, significant new focus potentially, depending
    on what happens in Congress?
        Mr. Selig. Thank you for that question, Senator. I think it
    is vitally important, as I mentioned, that we have certainty,
    clarity, and consumer protection in these markets. They are
    being used by everyday Americans, and having real guardrails
    around what these markets look like is critical. I really do
    applaud the efforts of this Committee, as well as others within
    the Congress, for putting together comprehensive, bipartisan
    market structure legislation, and I think that is the first
    step.
        Once we get market structure legislation in place, I think
    it is vitally important that we implement with haste because
    these markets are going to keep developing, and we have to keep
    in pace with the rapid speed of innovation.
        There are a lot of things that we can do with our existing
    authority, and I would very much take on the mission of making
    sure that our investors are protected in these markets. The
    CFTC has authority to police fraud and manipulation in the
    crypto spot markets. It has authority to regulate the futures
    markets, and also when there is leverage and financing involved
    in these transactions.
        Senator Smith. I am going to move on to my next question,
    but I think actually what I am asking is more of a management
    question. I understand that you can describe sort of what the
    organization is supposed to be doing, but the question of how
    you manage this kind of a transition is, I think, what I am
    trying to get at, and perhaps other Members of the Committee
    are trying to get at.
        I would like to move to another question. In 2018, the
    Supreme Court gave states the power to decide whether to
    legalize sports betting or not. In my home State of Minnesota,
    we have not done that. We have not legalized sports betting. Of
    course, Minnesotans can bet on sports online anytime they want
    to through the so-called prediction market platforms.
        As I am sure you also know, through the Indian Gaming
    Regulatory Act, tribes have the authority to regulate gaming
    within their reservations, including sports betting.
        This is my question. It seems to me that there is a bit of
    a conflict here because we have got these prediction market
    platforms which are offering sports wagers on tribal land with
    no tribal oversight. Now sports betting firms will argue that
    state and tribal laws do not apply because they are offering
    these event contracts, but it seems to me that this could be a
    semantics difference without an actual practical difference.
    Certainly, people in Minnesota do not know whether they are
    doing a sports wager or an event contract wager.
        Here is my question. Putting aside this distinction between
    a sports event contract and a sports wager, current CFTC
    regulations clearly prohibit event contracts related to gaming
    from being offered. If confirmed, can you commit to enforcing
    that prohibition? Tell us a bit about how you see this issue.
        Mr. Selig. Thank you, Senator. As someone who spent many
    years practicing law at law firms, as well as studying the law
    in law school, these are complex issues as to interpretation of
    what it means to constitute gaming. Of course, I have the
    utmost respect for our judges that are working on these issues
    in the court system, and I intend to always adhere to the law
    and follow what judicial decisions tell me to follow.
        I also believe that these types of issues are ones that we
    can work through together. Some of them are congressional
    issues as to whether we change statutes in certain areas. Of
    course, I was not at the CFTC at the time that this portion of
    the Dodd-Frank Act was drafted. I was not working in this
    Committee or on the Hill at the time, and so these are just
    very challenging interpretive questions that I will look to the
    courts on.
        Senator Smith. Well, it seems to me that the CFTC's
    prohibition on gaming is pretty unambiguous, and also Congress
    has made this clear that when it gave the CFTC authority to
    prohibit certain gaming contracts, that it intended to prevent
    gambling through these futures contracts. It seems to me that
    this is a semantics difference, and we should be able to count
    on the CFTC to enforce the law.
        Thank you very much, Mr. Chair.
        Chairman Boozman. Thank you.
        Senator Tuberville.
        Senator Tuberville. 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?
        Mr. Selig. Thank you, Senator. I really enjoyed our time in
    your office yesterday, talking through these and other issues.
        You raise a very important issue at the CFTC. You know,
    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 is 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 is not provided in any sort of
    written form, what we call lore in 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
    are processed efficiently and quickly, so people can go on with
    their business, and that is going to be a key priority of mine.
    I also intend to evaluate the processes in place currently
    within the Commission to ensure that they are efficient. If
    there are steps that are unnecessary, we will take them out. If
    there are things we need to be doing, we will add them into the
    process. I want to make sure that people are not waiting six
    months for a phone call from the staff.
        Senator Tuberville. Thank you. Will you commit to working
    to resolve outstanding issues restricting cross-border trade
    flows in over-the-counter markets?
        Mr. Selig. Senator, thank you. That is another important
    issue before the Commission. I think it is critical that we
    have substituted compliance in place where it makes sense. We
    need to deregulate with our allies, make sure that they are
    also allowing for our market participants to enter their
    markets. We should do the same. I do think it is vitally
    important to remove these blockages to over-the-counter
    derivatives markets.
        Senator Tuberville. Yes, how would you balance enforcement
    actions with providing clear, forward-looking guidance to
    innovators seeking to comply?
        Mr. Selig. Senator, I think, as I mentioned earlier, we
    have just massively overregulated the real-world economy. We
    have 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 remove a lot of these barriers that
    really are in their way from success.
        I think the most important thing, as I mentioned, is to
    remove a lot of these unwritten rules of the road, really
    create clear and simple guidelines that you do not need a high-
    priced law firm to figure out. I would create--make sure that
    our forms are really efficient and able to be, you know, easily
    understood and work with, of course, stakeholders to figure out
    the best path forward. I would love to work with this Committee
    on these issues as well.
        Senator Tuberville. I would like to hear your thoughts on
    something I hear a lot from our Bitcoin miners. Bitcoin, as
    crypto, is a commodity. If we sell corn, if we sell cotton, we
    pay taxes on it when we sell that commodity. When a Bitcoin is
    mined from a miner, IRS is standing next door ready to get
    their money from this Bitcoin. What are your thoughts on that?
        Mr. Selig. Well, Senator, I think that blockchain enables
    all new modes of commerce and really great economic mechanism
    design where people can participate in these networks like the
    Bitcoin network, earn rewards, and really earn a living by
    contributing to these networks. I think they are vitally
    important infrastructure. We should have them built in the
    United States. We should make sure that we are protecting our
    miners and infrastructure in the United States.
        In terms of some of these areas that are really beyond the
    scope of the CFTC's remit around tax and other things, I think
    it is vitally important that we work together with the Treasury
    and with our other agencies within the Administration to make
    sure that we are providing the right incentives to these market
    participants.
        Senator Tuberville. Yes, it just seems a little unfair to
    me that if you are a miner, you have got to pay taxes on it
    immediately and not wait till you sell it. You know, we hear
    that complaint all the time. I hope it is something we look
    into and encourage more mining. Thank you very much.
        Chairman Boozman. Senator Lujan.
        Senator Lujan. Thank you, Mr. Chairman.
        Mr. Selig, thank you for being here today. Thanks for
    taking time to come by and visit in the office as well, sir.
        As we are working to provide the CFTC with new authorities
    over digital asset spot markets with tokens like Bitcoin
    trading over $50 billion per day, the new authority would be an
    enormous new duty. The CFTC is a small agency compared to the
    SEC. Mr. Selig, yes or no, do you believe the CFTC would need
    more funding and staff to properly oversee digital asset spot
    markets?
        Mr. Selig. Senator, thank you for that question. I really
    enjoyed taking the time to meet with you yesterday and having
    the opportunity to talk through crypto and lots of other
    issues.
        I think that once I am in the seat, I will be able to take
    a much better look, if confirmed, of course, at the resource
    needs of the agency, and so I am very eager to get into the
    seat and be able to make that determination.
        Senator Lujan. Would it surprise you that there is maybe
    one or two people over there that have any expertise in this
    space?
        Mr. Selig. Senator, I believe that there are really great
    career staff at the agency, and I am very much looking forward
    to working with them. I believe that many of the agency staff
    are very well equipped, really understand our commodity
    markets, some of the best staff in the government, and so I am
    really excited to work with them.
        Senator Lujan. All right. I do not know why it is hard to
    say we need more staff, but we need strong staff, and we need
    the investment. This is a whole new space that we are building
    in the United States of America. I think you would find
    bipartisan support, everyone here working on the market
    structure bill and all the rest. I think people want to hear
    that we want to make an investment as the United States of
    America in this space. I am just real surprised that it is so
    hard to get that. I am guessing President Trump wants to see a
    robust CFTC in this space?
        Mr. Selig. Senator, I cannot speak for the President, but
    my view here is that the CFTC has a critical mission to protect
    these markets, to safeguard investors, and I will see that that
    is carried out. Whether we need more resources or not, once
    confirmed, I will make that assessment, but I really think it
    would be irresponsible for me to prejudge that issue.
        Senator Lujan. Have you looked at the current composition
    of the staff at the CFTC?
        Mr. Selig. Senator, I am familiar with the composition of
    the staff, but I will have to be in the seat really to
    understand what roles everyone is performing, what roles are
    performed by technology. Of course, we can do more with less
    with the great innovations of technology today, and so I
    really, once confirmed, look forward to making those
    assessments.
        Senator Lujan. When confirmed and you identify the need at
    the agency, will you come back to Congress and ask for the
    resources if needed?
        Mr. Selig. Senator, of course, I will absolutely make that
    assessment, and if needed, I will be very happy to have those
    discussions.
        Senator Lujan. I will take that as a yes. I appreciate
    that. Now, one of the areas I am concerned about, we spoke
    about this, was the FTX debacle. The relationship between
    Alameda Research FTX presented many conflicts of interest and
    ultimately led to massive fraud. What are your views on the
    deeply integrated structures of major digital asset companies?
    Should exchanges be allowed to be vertically integrated?
        Mr. Selig. Thank you, Senator. One of the great things that
    kind of came out of FTX, as much as it was a massive disaster,
    is that the CFTC's regulated DCM, the previously LedgerX and
    became FTX US, was fully funded. The assets in that DCM, in the
    clearinghouse, in the DCO were not lost, which is great. I
    mean, it shows that regulation works, and that is why I really
    commend this Committee and Congress for moving forward with
    bipartisan market structure legislation. I think it is vitally
    important that we protect investors and protect customer funds,
    and intend to do so, if confirmed as Chairman.
        Senator Lujan. Does vertical integration create risk?
        Mr. Selig. Senator, vertically integrated structures are
    one of the novelties that we are seeing in our markets today.
    The CFTC's principles-based regime really allows for more
    innovation in the way that businesses are structured, but, of
    course, we need to comply with the same sorts of principles and
    requirements. To the extent, of course, that a vertically
    integrated structure raises, for example, conflicts issues,
    they might be addressed differently, or there might be
    additional requirements in place to protect against those
    issues. The bottom line is that we should be always making sure
    that the same protections are in place, that investors are just
    as safe with a vertically integrated structure as without. If
    confirmed, that is something I very much look forward to
    considering and figuring out the best way forward there.
        Senator Lujan. Is it fair to say, Mr. Selig, that under
    your watch, you will not allow an FTX to happen again?
        Mr. Selig. Senator, as I mentioned the other day, you know,
    manipulation and fraud are only, you know, bounded by the
    ingenuity of man, and so it is very hard to always be able to
    prevent that.
        Senator Lujan. Let me ask the question this way. Under your
    watch, is it fair to say that if you identify a loophole that
    would allow an FTX, fraud, criminals, crooks to exist, that you
    will close them?
        Mr. Selig. Senator, the CFTC will be a cop on the beat, a
    strong cop on the beat under my leadership, and I intend to
    always adhere to the law and make sure we are enforcing the
    law.
        Senator Lujan. Last, Mr. Chairman, my time is expired, but
    illicit finance. I asked you, Mr. Selig, if you had a security
    clearance, and you do not have one yet. You will need to get
    one, I am certain, after confirmation. I suggested that you, as
    immediately as you can, get in a SCIF and learn about all the
    bad actors that are out there doing bad things.
        One of the things that recently happened is the President
    pardoned some guy. I do not know what the company's name is,
    Sleaze? Same thing, CZ, yes, Sleaze. It is publicly noted at
    the SEC and other places that terrorists were using this dude,
    terrorists. Are you okay with that?
        Mr. Selig. Senator, I am not familiar with all the facts of
    the matter, but of course, I will always uphold the law and
    ensure that we are enforcing the law on these contests.
        Senator Lujan. Well, it is public facing. I will make sure
    that I submit it into the record. We will get you the articles.
    We will get you the SEC case. You are at the SEC now, correct?
        Mr. Selig. That is correct.
        Senator Lujan. You probably have more access to information
    than I do over there. I really encourage you to see this
    because the President says he really does not know this guy,
    and the guy pled guilty to doing all kinds of ugly things. I do
    not think anyone here wants to see any of this stuff. I
    certainly hope that you keep your character when you are in
    this position, as I shared with you in the office, and that you
    are not asked to compromise yourself. You are a person of
    character, Michael, and that is your reputation. I just
    certainly hope you do everything you can to maintain that and
    that you do good in this space. You are knowledgeable. You are
    probably one of the most knowledgeable people going into this
    space in a regulatory role, and it is going to be critically
    important. We cannot get this wrong in the United States of
    America. We cannot allow crooks to get away with things. We
    cannot allow terrorists to get away with stuff either. I
    certainly hope that we can work together in a strong bipartisan
    way and make this happen.
        I appreciate the work of the Chairman and my colleague here
    to my--my seatmate, I will say, Senator Booker, with what they
    have already put together here. I look forward to seeing more
    of that good work, but just stay strong in this space as well.
        Thank you, Mr. Chairman.
        Chairman Boozman. We appreciate it, and I agree totally
    regarding funding, making sure that we have adequate funding
    for the agency.
        Then, too, I think your other questions concerning FTX, all
    of these other things, that is why we need to work hard to get
    a good market structure bill that is good for the industry and
    allows it to grow, keeps it here, but also, most importantly,
    protects the consumer.
        Then, too, I suggested the same thing regarding security
    clearance, so it is good.
        Senator Hoeven.
        Senator Hoeven. Thank you, Mr. Chair. Mr. Selig, thanks for
    our visit prior to the meeting, appreciate it, a chance to
    visit with you.
        Before we talk about the digital asset issue for a minute,
    very important that our farmers and ranchers be able to utilize
    the futures market to hedge the crops they grow and the
    livestock they raise, very important. That is your traditional
    role. I want to hear from you how you are going to make sure
    that we are making that system work as well as possible in an
    open, clear, transparent way for our farmers and ranchers out
    there that need to be able to rely on it.
        Mr. Selig. Thank you, Senator. I very much enjoyed the
    opportunity to meet with you this morning to discuss this and
    other issues.
        As I mentioned earlier, it is vitally important that we
    protect our farmers and ranchers, ensure that they have the
    tools they need to manage their risk, make sure these markets
    are fair, orderly, and efficient, make sure there is not fraud
    and manipulation that interferes with the prices of commodities
    in these markets.
        It is vitally important that we understand that many of
    these markets have been massively overregulated throughout the
    chain. We have seen FCMs introducing brokers and other
    intermediaries highly, highly regulated, such that the costs
    are being passed down to farmers, ranchers. We are seeing less
    FCMs, less introducing brokers able to take on these clients.
    You know, some of the ones with the large volume able to do it,
    they are not banks, and some of the risk management functions
    at the farmers' and ranchers' businesses, they are not willing
    to work with these firms.
        I think it is vitally important that we take a very hard
    look at where we are regulating and making sure that it is
    absolutely essential. I am in favor of the minimum effective
    dose of regulation, no more, no less. We should not have more
    reporting than is necessary. We should not have more
    prescriptive requirements than needed. I do believe that if we
    get the right regulation in place, these businesses will
    thrive. We will see more risk management. We will see more
    farmers, ranchers, and everyday individuals and commercial end
    users using these tools, these risk management tools to manage
    their business risks, and that is going to be better for all
    Americans.
        Senator Hoeven. Right, and for the large, sophisticated
    users and that kind of thing, you know, they always manage to
    figure out, you know, how to comply with all the different
    rules, requirements, all that kind of thing. Are you focused on
    making sure that for that family farmer or family rancher that
    they are able to access the futures market in a way that they
    understand, that is transparent, and that works for them?
        Mr. Selig. Senator, absolutely. I think that is vitally
    important. They need to have clear and simple rules of the road
    that they understand, and they need to have access to the tools
    that they need to manage the risk.
        Senator Hoeven. In the digital asset space, have you looked
    at both the House legislation and the proposed Senate
    legislation? Does it provide you--in your opinion, does that
    provide the statutory and regulatory--or the ability to build
    the regulatory framework in a way that will make sure that,
    again, there is transparency and that people understand what is
    going on with these digital markets, and that, as Senator Lujan
    said just a minute ago, that, you know, people are adequately
    protected?
        Mr. Selig. Senator, thank you. One of the areas that we
    discussed earlier today is really the breadth of what is
    happening in these digital asset markets. There is a wide range
    of new types of blockchain networks, applications, and assets.
    The legislation--I think this is a great, great effort to bring
    clarity, certainty, and consumer protection to these wide-
    ranging novel markets.
        I believe that the legislation--you know, the efforts in
    this Committee, as well as the Clarity Act and the efforts in
    the House, are just absolutely critical. They provide the
    scaffolding, the infrastructure that we need to make sure that
    we have a registration regime, that we have requirements around
    consumer protection, and also provide a lot of authority to the
    CFTC and its sister agency, the SEC, to flexibly regulate.
    There is going to be a lot of work to be done in implementing
    these statutes, so I really am excited for you all to get the
    legislation done, and I think these are both great efforts.
        Senator Hoeven. Are you prepared to help Members of this
    Committee make sure they understand what is being done in this
    space and accomplished with this legislation, but also what
    additional safety measures may need to be in place to get the
    job done fully and well?
        Mr. Selig. Senator, yes. I think one of the benefits of
    having spent many years in private practice working with
    digital asset firms and then working as Chief Counsel at the
    Crypto Task Force at the SEC has been that I have seen and met
    with many of these crypto businesses, understand both the good
    and the bad and what we need to do to make sure that we are
    protecting our investors.
        Senator Hoeven. Thank you.
        Chairman Boozman. Senator Booker.
        Senator Booker. Thanks, Mr. Chairman. I just want to put
    into the record that the witness appears to be so young that I
    do not think he can drink alcohol should he get confirmed. I am
    a guy in a job at 50 that you are still considered young in the
    Senate, but this guy is----
        Chairman Boozman. You are saying what I was thinking.
        Senator Booker [continuing]. putting me to shame. Yes.
        [Laughter.]
        Senator Booker. Yes. I----
        Senator Hoeven. Are you trying to say you are only 50?
        Senator Booker. You are mean, sir. You are mean.
        [Laughter.]
        Senator Booker. Let his cruelty be noted for the record.
        A lot of the staffers, sir, were whispering back here
    wondering how old----
        Senator Hoeven. I meant you look a lot younger.
        Senator Booker. You do do that, sir. You do do that.
        A lot of my questions have been covered. I am really happy
    to see you here, and I am really encouraged by people on both
    sides of the aisle that seem to have a lot of high hopes for
    your leadership.
        I want to jump right in. I am just grateful for the
    Chairmen and the Ranking Members, they are the two of their
    partnerships with me over the last few weeks. I am trying to
    put together a discussion draft on spot digital commodity
    market regulations has been really vital and I think really
    important bipartisan work. Senator Klobuchar and Senator
    Boozman have been phenomenal. I am just grateful for your work
    over the last few months with the Administration working on a
    policy related to digital assets, working with this Committee,
    as well as Senate banking.
        Even with rules of the road, you and I both know it is
    critical that we have regulators that are capable, competent,
    and who will both oversee the market and enforce the rules,
    which we have already talked about at quite some extent. You
    have spent the last seven months at the SEC, which is a much
    larger regulator in terms of staffing scope and scale. You are
    aware of this. The SEC has more than 5,000 full-time employees
    versus the 600 at the CFTC, with about 1,500 FTEs in the SEC's
    enforcement arm compared to just 161 here.
        You have heard it from multiple Senators on both sides of
    the aisle, with a couple hallelujah amens from the Chairman,
    that there is a real problem right now with capacity in the
    agency that you are up to lead. I am hoping that is something
    you have heard, and I am hoping, as perhaps some of my
    colleagues want, that you are more bold in asking, as we
    hopefully get you more responsibility, that you start fighting
    and standing up for more of the resources necessary to do
    something that is really vital, especially when it comes to
    issues of security and safety that Senator Lujan so eloquently
    spoke to.
        I remain deeply concerned also by a lot of issues of
    corruption we are witnessing. I have a real problem that a
    President of the United States could issue a coin. That, to me,
    just opens up the door to a whole bunch of ethics problems. We
    are seeing that right now with this White House. It is making
    billions of dollars with foreign nationals investing in that
    coin. I am really concerned about how agencies have lost a lot
    of their independence and are being weaponized to go after
    political enemies, that there is an undermining of regulators
    and other government agencies that serve taxpayers. There is
    politically motivated firings and more.
        I am not even going to ask this as a question. I am just
    going to say, should you be confirmed, I hope you will
    prioritize this idea that Congress has had over generations now
    that agencies such as yours should be independent agencies
    above politics, really fighting for the best interests of
    Americans, especially at an era where I think corruption is on
    the rise in American Government, and a lot of people are
    worried about trust. I just want to say that, for the record,
    and I hope you can be that kind of leader that maintains that
    kind of independence.
        I want to get into some of the corruption we are seeing in
    American sports right now. It would be hard to have missed that
    in this past month, the FBI indicted several NBA and MLB
    players that were trying to manipulate outcomes for profit. I
    am a fan. As a college football player myself, the older I get,
    the better I was, I must say, so I could have been in the pros,
    too. The bad actors are caught because regulated sports books
    caught the suspicious activity.
        Given these recent events, it is all more concerning that
    sports event contracts are being offered without the same
    monitoring. All designated contract markets must comply
    initially and on an ongoing basis with 23 CFTC core principles,
    specifically core principle number three that requires
    contracts must not be readily susceptible to manipulation.
        You are going to be right there should you be confirmed,
    and I want to make sure that you have strong integrity in your
    monitoring systems in place to ensure athletes, coaches, league
    employees and referees or any close family or friends or such
    individuals are not manipulating America's pastime, America's
    greatest sport, I would say football and more, and that is
    something I wanted you to hear from me since we did not have a
    chance to meet privately.
        The last thing I want to go over is the greatest state in
    America is--clearly, you agree with me, you could just nod your
    head--is New Jersey. It is historic. Our great Garden State is
    the East Coast home of gaming in the U.S. industry, employs
    approximately 51,800 people, garnering close to $2 billion in
    revenue. America should be thanking New Jersey more for all of
    our great contributions to this public, but one of them is we
    really did the work to legalize sports betting across the
    United States. We were the ones fighting in court across this
    last decade to get that legalization. New Jersey also fought
    for years to bring sports betting into the legal fold, then to
    be sued by those platforms and waste taxpayer dollars fighting
    for the right to police this activity is frustrating for our
    state officials and the 34 attorneys generals.
        Again, it is very important to me, and I will end with
    this, that the sports contracts have enforcement mechanisms,
    with over half of the country's chief law enforcement officers
    saying these contracts break state laws that we are seeing. I
    am just frustrated that the CFTC has not acted. I will let that
    be my real question to you after my statements.
        Mr. Selig. Senator, thank you. I do look forward to getting
    the opportunity to meet. I know we were unable to connect
    yesterday. New Jersey, of course, is a great state. My wife,
    sitting behind me, is from the state.
        Senator Booker. You married up, obviously, if you married a
    Jersey girl, sir.
        Mr. Selig. That is right. As are actually--my parents,
    actually, are from the area as well.
        I think it is vitally important that the CFTC look to the
    courts on a lot of these issues. They are, of course, being
    litigated across the country. Really, to the extent that any of
    these event contracts constitute gaming, of course, you know,
    that is a question for the courts. If they are trading in our
    markets, if the products are self-certified and the CFTC is
    allowing them to trade in the markets, of course, it is vital
    that the CFTC ensure that those contracts are not being
    manipulated, that they are not readily susceptible to
    manipulation. It is core principle. Of course, if confirmed,
    that would be something that I would enforce.
        Senator Booker. Well, you know, judges might hand down a
    decision in agreement with Jersey and 34 state attorneys
    general, and I am hoping that you will then follow those courts
    order companies listing event contracts related to sports
    events to stop operating in states in which the judges find
    them to be contravening state gambling law. I am hoping we can
    have a chance that you and I can discuss it. This is, you can
    see, is a Committee that has a lot of bipartisan agreement, and
    this is a space I hope you and I can have a dialog on. It is
    such an important industry to my state. Thank you very much,
    sir.
        Chairman Boozman. Thank you.
        Senator Slotkin.
        Senator Slotkin. Thank you, Chairman.
        Thank you for our meeting yesterday. Over here. I am at the
    bottom of the dais. Thank you for our meeting yesterday. I
    appreciated your time. The issues I asked you about in my
    office are going to be the same issues I ask you here.
        You have a background representing and working with the
    crypto industry, a trillion-dollar industry. My issue is just
    oversight and making sure that I can turn back to Michiganders
    and say, if you are going to make the decision to invest in
    crypto, you are safe. You are not going to be scammed. You are
    not going to be defrauded out of that money.
        The CFTC, since the 1930s, was set up as a five-
    Commissioner body, you know, two Democrats, two Republicans,
    and then whoever is in power gets the chairmanship. We are all
    working on a market structure bill. I voted on a version of
    that bill in the House, but that is when we had five
    Commissioners who created this push and pull, this greater
    sense of oversight. If confirmed, you will be the only one on
    this body.
        Can you help me understand--I know you said yesterday and
    today you want to hear from different views. That is good.
    Debate team, heard the whole thing. Do you support two
    Democrats, two Republicans being with you on this Commission?
        Mr. Selig. Thank you, Senator. As you know, and as I
    mentioned yesterday, of course, I do very much appreciate
    having different viewpoints, hearing from----
        Senator Slotkin. I got that.
        Mr. Selig [continuing]. everyone at the table, of course.
    As I mentioned as well yesterday and earlier today, it is the
    President's decision to nominate candidates to be----
        Senator Slotkin. What would your advice to him be? I mean,
    you are going to be the guy hanging out there by yourself,
    right? This Administration has kind of systematically
    dismantled independent commissions, the FTC, the Consumer
    Product Safety Commission, the National Labor Relations Board.
    They have been dismantled. Here we have a new industry, crypto,
    you know, very, very kind of up and coming. I am supportive of
    figuring out good regulation. Would your advice to him be like,
    hey, man, give me some balance here so I have the ability to
    say this is an independent body? What is your advice to the
    President on this issue?
        Mr. Selig. Well, Senator, I would certainly respect the
    President's decision on these issues. My role and my job, if
    confirmed as Chairman, is to fulfill the agency's mission, and
    I believe that mission is best fulfilled when we have a
    diversity of viewpoints coming from wherever we can find those
    viewpoints.
        Senator Slotkin. I get that and I--good. I am just saying
    for those of us who want to get to yes on a market structure
    bill, who want to be proactive, having some sense that there is
    some oversight, that it is not just going to be you vulnerable
    to the pressure of the President as the only one there, is
    something that I think many of us will be watching, certainly
    me.
        On sports events contracts, Senator Booker can talk all
    about New Jersey he wants. We are the number two. Michigan is
    the number two online casino and sports betting state, $74
    million annually. The tribes and our licensed sports prediction
    markets are the ones who control that. My understanding is that
    the CFTC regulations are clear on this issue, that sports
    contracts should not be allowed because they are equivalent to
    betting, right, to gambling. In your opinion, should sports
    event contracts be listed through the CFTC?
        Mr. Selig. Thank you, Senator. As I mentioned, this is a
    really complicated issue. It is an interpretive question that
    is working its way through the courts, and so I will respect
    the decisions of those courts. I also am very interested to
    work with this Committee to the extent that there are views
    that we need to change anything in the statute. This is
    ultimately a question for the courts. As a Chairman of an
    agency, I will always look to the views of the courts and to
    Congress. As the Supreme Court has said in the Loper Bright
    decision, you know, the deference of the agency is limited. We
    have to look to the courts.
        Senator Slotkin. Okay. I appreciate that. You had said
    yesterday you had not met with the tribes. I encourage you to
    meet with the people who are in this business and just have--
    again, if you appreciate alternative views, it should not be
    hard to meet with these folks.
        President Trump announced that he is launching his own
    Truth Predict that would basically support event contracts and
    that they be traded. If the President asks you for a carveout
    or an exception so that Truth Predict can be listed, how will
    you respond?
        Mr. Selig. Senator, I always uphold the law and stick to
    the law. I mean, to the extent that the President were to, in
    compliance with this ethics rule, submit an application, he
    would go through the same process as everyone else.
        Senator Slotkin. That is true. I would hope that you would
    be very careful about exceptions and the perception of graft
    because he has invented this thing, and you would be the only
    guy in the hotseat that he would have to get an exemption from,
    so we will hold you to that.
        Thank you, Chairman, and I yield back.
        Chairman Boozman. Senator Schiff.
        Senator Schiff. Thank you, Mr. Chairman.
        In California and across the country, prediction market
    platforms like Kalshi have been offering so-called event
    futures contracts on sporting events. I know you have been
    asked a great deal about this. I just want to drill down
    further. Right now, I can go on Kalshi and predict who will win
    tomorrow night's Thursday night football game between the Bills
    and the Texans. If I spend $1 predicting who the next coach
    will be of the New York Giants, I can make $6, sounds a lot
    like gambling to me. These prediction markets are trying, I
    think, to have it both ways, simultaneously marketing
    themselves as financial products and marketing themselves as
    sports betting. There is no economic utility to these
    contracts. There is no price discovery being facilitated. They
    are offering gaming products with no regulation, and I think
    that is in violation of state law and tribal sovereignty.
        The Commodity Exchange Act prohibits any event contracts
    from being listed, traded, or cleared if, first, the contract
    involves one of five enumerated activities, one of them being
    gaming; and second, the contract is deemed contrary to the
    public interest. The regulations implementing the CEA deem all
    five of these enumerated activities as contrary to the public
    interest. That is terrorism, assassination, war gaming, or
    unlawful activity under federal and state law.
        We have seen a proliferation of sports betting contracts,
    sports event contracts being offered this year, even though the
    vast majority of states say that offering these contracts
    violates state and tribal laws. Meanwhile, the CFTC has failed
    to issue any guidance on whether sport event contracts violate
    existing regulations.
        I understand that you will defer to the courts. I would
    hope that you would defer to the courts and abide by court
    decisions. What is your view on whether these are gaming in
    violation or these are some kind of different contractual
    obligation that has some kind of economic merit, intrinsic
    economic merit?
        Mr. Selig. Thank you, Senator. As you know, as a good
    lawyer, the answer is always it depends, and these--that is why
    these are questions for the courts. They are really complicated
    issues of interpretation.
        Senator Schiff. Well, let me make a simple one. Let's talk
    about the Bills game tomorrow night. I go on my phone, on one
    of these platforms, and I place a bet on who wins the game.
    Gaming? Sports gaming?
        Mr. Selig. Senator, it would be irresponsible for me to
    prejudge that issue. I will look to the courts----
        Senator Schiff. Well, let me ask it this way. If I were to
    go into a casino and make a bet or a facility that legally
    offers sports gaming and bet on the Bills game, should it
    matter whether I am doing it in a licensed facility? Is it a
    different animal if I do it on my phone through an app? Does it
    change the nature of a gaming bet, what technology I use to
    make it happen?
        Mr. Selig. Senator, I again would look to the courts on
    these questions of facts and interpretation of the law. It is a
    complex issue. I will follow what the courts say. To the extent
    there need to be changes because the law was drafted in a way
    that is hard to comprehend, I am here to help with that effort.
        Senator Schiff. Well, I mean, let me just ask--maybe even
    break it down more simply. If you and I bet on who wins the
    Bills game tomorrow, would you consider that gambling?
        Mr. Selig. Senator, on this issue, I would look to the
    courts, so I would look to what the courts say about that
    issue. I think it is still working its way through, so once we
    have an outcome that we can rely on and that we can interpret
    within the agency, I would look to that.
        Senator Schiff. Well, if betting on who wins or loses a
    football game is not sports gaming, what do you think sports
    gaming is? Can you give me an example that, okay, this is
    clearly gambling, sports gambling? There may be some gray areas
    and maybe some complex questions, as you say, but, okay, this
    is certainly sports betting. What would you say?
        Mr. Selig. Many lengthy legal opinions have been written on
    one word in a statute, and I would really want the benefit of
    understanding what the judges think about the issue. This could
    be one that works its way all the way up to the top, and so I
    will look to the courts on the issue.
        Senator Schiff. Should I take it from your answer that you
    are a tabula rasa on this? You are not coming into this
    position with any preset ideas as to whether a future events
    contract that predicts who wins a football game, you are not
    coming into this with any preconceived idea whether that is
    gaming or not?
        Mr. Selig. I think it would be irresponsible for me to
    prejudge that issue, and so I will come into the issue at the
    Commission, if confirmed, with a blank slate and look to the
    courts.
        Senator Schiff. I would join with Senator Slotkin in urging
    you to meet with those deeply impacted by this issue, which
    includes the tribes as well.
        Thank you, and I yield back, Mr. Chairman.
        Chairman Boozman. Senator Warnock.
        Senator Warnock. Thank you, Chair Boozman.
        Congratulations, Mr. Selig, on your nomination. Welcome to
    you and your family.
        I have to say that I think you enter this nomination
    process under a great deal of pressure. Congress has created a
    five-person bipartisan Commission to run the agency of those
    five seats. There is currently just one Republican Commissioner
    left who, by default, is the acting Chair running the agency.
    You are the President's second nominee, following opposition
    from some of the President's richest friends to the previous
    nominee.
        I want to follow up a little bit on my colleague Senator
    Slotkin's question and ask you, yes or no. Do you do you
    believe having an incomplete CFTC, including zero minority
    Commissioners, hampers the effectiveness of the CFTC?
        Mr. Selig. Thank you, Senator. As I mentioned earlier, I do
    believe it is important to have a diversity of viewpoints. The
    CFTC has a vital mission that I intend to, if confirmed----
        Senator Warnock. Is that a yes?
        Mr. Selig. Senator, the CFTC is able to function with a
    single Chairman, as it has been with an acting Chairman. I do
    believe, as I mentioned, that it is very important to have a
    diversity of viewpoints.
        Senator Warnock. You think that this is a good situation
    that we have a CFTC with one Chairman, even as we negotiate
    crypto market structure legislation, which could grant the CFTC
    new authorities to oversee a $4 trillion market?
        Mr. Selig. Senator, I believe that it is important that the
    CFTC carry out its mission. The way that it is designed, of
    course, is that it can function with one Chairman, if
    necessary, so that it can carry out its mission. I would take
    that job very seriously, if confirmed.
        Senator Warnock. Here is why this is so important. We are
    currently negotiating this legislation. Many of us who are
    engaged in these negotiations have called for a provision that
    Commissioners from both parties be appointed for the CFTC to
    implement any crypto legislation through new rules or
    regulations. When I speak to leaders in the crypto industry,
    they tell me that it is critical to them that crypto laws and
    regulations have bipartisan support. This is what we are
    hearing from the industry.
        Do you agree that having bipartisan support behind new
    cryptocurrency regulations would help ensure stability and
    durability of these policies beyond this Administration and be
    better for both the industry and the investors long term, so
    that you are not suffering from whiplash, depending on whether
    it is a Democratic Administration or Republican Administration?
    Is that a fair assessment?
        Mr. Selig. Senator, as I mentioned earlier, I really
    commend the efforts of this Committee to develop bipartisan
    crypto market structure legislation. I think both voices in the
    room are critical to getting this right, and, if confirmed as
    Chairman and assuming this legislation were to pass and be
    signed by the President, the notice and comment rulemaking
    process is a great way to get a diversity of viewpoints through
    comments.
        Senator Warnock. We are not getting any minority input from
    the agency on how it would implement such a complex piece of
    legislation, and that is making this whole process harder and
    harder.
        I am going to turn to another subject matter. Basic
    consumer and investor protections are the pillars of a sound
    financial system. Regulatory clarity is needed for consumers
    who trade in digital commodities. Last week, Chair Boozman and
    Senator Booker released a bipartisan discussion draft to
    regulate digital assets. This discussion draft is an important
    starting point, but key sections remain under negotiation,
    including what new consumer protections are necessary to
    protect consumers from bad actors. Investor protection is
    critical, and the crypto markets are heavily focused on retail
    investors. What new authorities does the CFTC need from
    Congress to ensure consumers are treated fairly in your view?
        Mr. Selig. Thank you, Senator. As I mentioned earlier, the
    CFTC has existing authority to police fraud and manipulation in
    these markets, but bipartisan legislation really can take that
    to a further level by ensuring that we have market regulation
    for these markets, so things like registration, examinations of
    these platforms, making sure that consumer funds are safe and
    secure, segregation of funds, things of this nature that we
    have and expect in our markets today.
        Of course, coming from the SEC, currently working well with
    the SEC on the disclosure requirements to the extent that there
    are securities that are being offered in connection with a
    digital asset, making sure there is disclosure there, all these
    things can work really well together to making sure that we
    have a robust and resilient regime around crypto.
        Senator Warnock. One last question. The CFTC is the only
    financial regulator that is funded entirely by appropriations.
    In the Boozman-Booker discussion draft, they authorize an
    additional $150 million to the CFTC to hire new staff, improve
    their technology, and prepare the agency to implement a massive
    new regulatory structure. Do you support the authorization of
    $150 million to the CFTC to implement a crypto regime as
    designated by the Boozman-Booker discussion draft?
        Mr. Selig. Thank you, Senator. If confirmed, I really want
    to get in the seat and understand the needs of the agency, so
    it would be premature for me to take a view on the exact amount
    and what I support but----
        Senator Warnock. Do you support any new funding for the
    CFTC?
        Mr. Selig. It would be premature for me to take a view on
    new funding. I really want to understand the needs of the
    agency. I think, you know, anyone coming into a seat with, you
    know, many staff, many systems in place, I need to understand
    the processes and who is there, and then I can make a decision
    on that.
        Senator Warnock. Well, I think it is an important question,
    and, you know, we have got to have adequate resources in order
    to protect consumers. I look forward to continued discussion on
    this issue. Thank you.
        Chairman Boozman. Thank you, Senator Warnock.
        In regard to that, I think the Committee as a whole is with
    you 100 percent regarding having adequate funding. We have been
    talking to the Administration about that, how important it is,
    and I will commit to you that, as we go down that path, we will
    have a hearing if we need to, and, you know, we are going to
    make sure that we do have adequate funding.
        The other thing, too, was also recognizing the importance
    of having Democrats and Republicans on the Commission. Again,
    talking to the Administration, working with Senator Klobuchar,
    Senator Booker, the next step is getting Senator Schumer to
    actually nominate somebody. We want to go through the process
    where, you know, it is not Republicans picking who you want,
    but you yourselves, you know, Senator Schumer will nominate
    somebody, so we are also working with him to get the process--
    --
        Senator Warnock. I am heartened by your commitment to a
    bipartisan Commission.
        Chairman Boozman. Yes.
        Senator Warnock. Thank you so much.
        Chairman Boozman. Yes. If the roles were reversed, you
    know, I would be saying the same thing. Thank you.
        Senator Warnock. Thank you.
        Chairman Boozman. Senator Klobuchar, have you got any
    other----
        Senator Klobuchar. Yes. I just want to follow up on just a
    few things. Should you be confirmed, Mr. Selig, will you commit
    to working with Congress to ensure that the whistleblower
    program is funded in a consistent and predictable manner?
        Mr. Selig. Thank you, Senator. Yes, I will commit to that.
    I think the whistleblower program is a very important program.
    It helps align incentives when people are afraid to come
    forward because of retaliation risk, and so I do think it is a
    very important program.
        Senator Klobuchar. Having worked at the SEC, would you
    commit to--or I guess my better question would--how would you
    approach coordinating with the SEC and Treasury on overlapping
    issues to avoid regulatory gaps? I mean, obviously, this has
    been a boiling up issue in the Capitol for quite a while, but
    talk about your view on it.
        Mr. Selig. Thank you, Senator. This is a really important
    issue. I think it is critical that the SEC and the CFTC, and
    other regulators as well all work well together. There are so
    many products and services, and platforms that have fallen
    through the cracks because it is just too hard to comply when
    you are dealing with multiple regulators, and they do not work
    well together. We have discussed today many of these
    interpretive questions. Many of that is for the courts, but
    sometimes the agencies have to make decisions together as to
    what sits where, and I am committed to working well with my
    current boss, Chairman Atkins at the SEC, as well as others
    within the Administration to make sure that we get things right
    for Americans.
        Senator Klobuchar. Given that the CFTC was structured by
    Congress as an independent commission, does it have, in your
    view, an independent obligation to determine the legality and
    the appropriateness of its actions and the regulations that it
    adopts?
        Mr. Selig. Senator, I think that is an important question.
    You know, to the extent that the CFTC has deference authority
    on certain issues where it has been granted that from Congress,
    then the CFTC will go ahead under my leadership and interpret
    where it is expressly told to do so. Of course, we will always
    follow the law, and where it does not have deference authority,
    of course, we look to the courts.
        Senator Klobuchar. I mentioned event contracts in my
    opening, and I know that some of my other colleagues have asked
    about this. Once again, we are back to the resource issue, but
    do you think the CFTC has the resources to oversee this vast
    new market that presents different characteristics from the
    traditional derivative markets?
        Mr. Selig. Senator, as I mentioned earlier, this is a
    critical aspect of the jurisdiction of the agency to the extent
    it is added through the legislation, and the CFTC needs to take
    that seriously. It has an important mission of making sure that
    there is investor protection and that these markets are sound
    and safe, so I take that mission very seriously. If confirmed,
    we will take a very close look at our resources and make sure
    that we have everything we need to fulfill our mission.
        Senator Klobuchar. Okay. Thank you very much.
        Chairman Boozman. Thank you, Senator Klobuchar, very much.
        Again, thank you, Mr. Selig, for appearing before the
    Committee. To our Committee Members, thank you for your
    participation. As always, we appreciate the staffs on both
    sides working so hard to make these things happen. The record
    closes at 6 p.m. tonight.
        Today's hearing is now adjourned.
        [Whereupon, at 4:30 p.m., the Committee was adjourned.]

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                                A P P E N D I X

                               November 19, 2025

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                             QUESTIONS AND ANSWERS

                               November 19, 2025

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