CFTC Proposes New Rules to Prevent Another FTX-Style Collapse
CFTC Chairman Mike Selig used the FTX collapse as a case study to push for clearer rules in the crypto industry. Speaking at the Fordham Law Blockchain Regulatory Symposium on October 5, 2026, Selig argued that the November 2022 implosion of FTX demonstrated the consequences of an unregulated market. He highlighted that over $8 billion in customer assets were stolen by FTX operators, but assets held at FTX’s CFTC-registered subsidiaries remained protected and segregated.
On the same day as his speech, the CFTC issued an advance notice of proposed rulemaking (ANPRM) outlining two frameworks: Regulation CTX and Regulation CAM. These proposals aim to create a new federal registration category for crypto asset markets, focusing on leveraged and margined retail trading. The safeguards include proof-of-reserves requirements and anti-manipulation controls, with futures commission merchants playing a regulatory role.
Selig emphasized that the new rules aim to prevent fraud rather than just prosecute it after the fact. His perspective reflects a shift from the previous regulation by enforcement approach. Selig has long argued that the Commodity Exchange Act is sufficient for regulating certain digital assets, a stance supported by the CFTC’s 2014 classification of Bitcoin as a commodity under former Chairman Timothy Massad.
Selig’s rapid rise to the chairmanship began with his nomination by President Trump on October 27, 2025, and confirmation by the Senate on December 18, 2025. Following Caroline Pham’s departure, he became the sole commissioner at the agency.