Who Is Michael Selig?

Michael Selig is widely recognized as an expert in financial regulation and digital asset law. Before his nomination, he served as chief counsel at the U.S. Securities and Exchange Commission (SEC) and worked within the agency’s Crypto Task Force. Selig also brings private-sector experience from his time at Willkie Farr & Gallagher, where he advised on blockchain and digital asset regulatory issues.

Industry observers believe Selig’s background at the SEC could help strengthen coordination between the two main regulatory bodies — the SEC and the CFTC. Such alignment could be critical in shaping the next phase of U.S. crypto policy, especially as both agencies seek clearer jurisdictional boundaries.

The Role and Importance of the CFTC

The CFTC is responsible for regulating commodity futures, options, and derivatives markets in the United States. Over the past few years, the commission has taken on an increasingly important role in overseeing the digital asset sector, particularly after approving Bitcoin and Ethereum futures contracts.

If confirmed by the Senate, Selig is expected to guide the CFTC toward a more prominent role in crypto oversight. Recent legislative proposals in Congress have aimed to expand the agency’s authority over digital assets, potentially making the CFTC the lead regulator for much of the crypto market.

Nomination Process and Market Expectations

Trump’s nomination of Selig comes after a period of leadership uncertainty at the CFTC. The agency has been without a confirmed chair since Brian Quintenz — Trump’s previous pick — withdrew his candidacy following industry backlash.

Some analysts describe Michael Selig as a “pro-innovation yet regulation-conscious” figure who could strike a balance between fostering growth and maintaining market integrity. Amanda Tuminelli, Executive Director of the DeFi Education Fund, commented that “Selig understands both the technology and the importance of building the right legal framework — he’s highly respected across the industry.”

If Selig’s nomination is approved, analysts expect the CFTC to take a more active stance in defining digital asset rules, reducing regulatory uncertainty, and aligning U.S. policy with global standards. For now, all eyes are on the Senate confirmation process — one that could significantly shape the trajectory of crypto regulation in the years ahead.

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“We’re Not Going to Kick Down the Door”

In a recent interview, Atkins underlined that sudden enforcement actions for technical violations are no longer the norm. Instead, businesses will be given the opportunity to address issues ahead of time. “It’s not right to suddenly knock on a company’s door and impose penalties over a minor technical breach. Firms should expect to be notified first,” Atkins explained.

A Break from the Gensler Era

This policy marks a clear departure from the approach under former SEC Chair Gary Gensler. During his tenure, the SEC launched high-profile lawsuits against some of the biggest names in crypto, including Ripple Labs (2020), Terraform Labs (2022), and exchanges such as Binance, Coinbase, and Kraken in 2023. These actions not only disrupted the industry but also cost companies billions in legal fees.

Ending the “Shoot First, Ask Questions Later” Approach

Atkins criticized past enforcement decisions, noting that many lacked legal precedent and predictability. “The SEC was acting without clear grounding, often shooting first and asking questions later,” he said. Under his leadership, businesses could be granted up to six months to make necessary adjustments before enforcement measures are considered.

Most Tokens Are Not Securities

Another significant shift is Atkins’ stance on digital assets. He argued that the majority of cryptocurrencies should not fall under securities laws. Moreover, he expressed support for tokenized versions of stocks and bonds, stressing that they should carry the same legal rights as their underlying traditional assets.

Signs of a New Era at the SEC

Following his confirmation on April 9, Atkins has already begun restructuring the agency’s approach to digital assets. The SEC has formed a dedicated “Crypto Task Force” to work more closely with the industry, while several investigations and enforcement actions initiated under the previous leadership have been dropped.

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With more than $193 billion in digital assets currently staked, it remains uncertain in the U.S. whether staking services fall under the definition of securities.

The previous SEC administration had imposed sanctions on major exchanges such as Kraken, Coinbase, and Consensys due to their staking services. However, the current administration has withdrawn most of these enforcement actions.

Everstake: Users Always Maintain Asset Control

During the meeting, Everstake stated that non-custodial staking is a technical process, not an investment product. According to the company, users do not lose control of their assets during the staking process and do not transfer ownership to any third party.

The company argued that this model does not technically involve an investment contract but is instead a blockchain infrastructure mechanism. Company founder Sergii Vasylchuk said:

“Staking is not a financial instrument or a securities transaction. It is a fundamental protocol mechanism that ensures the functioning of decentralized networks.”

Regulatory Uncertainty Must End

In a letter submitted to the SEC’s Crypto Task Force on April 8, 2025, Everstake requested regulatory clarity for non-custodial staking, as well as custodial and liquid staking models.

The company emphasized that in this staking model, users retain custody of their assets, no funds are pooled, and there is no expectation of profit based on managerial efforts.

In Everstake’s system, users delegate only validation rights, while maintaining full ownership of their tokens. Rewards are distributed algorithmically by the blockchain network itself.

Non-Custodial Staking Does Not Pass the Howey Test

The letter also highlighted that the staking process does not meet any element of the Howey Test. Users do not invest in a common enterprise, do not expect profits from the company’s efforts, and are not dependent on company management for financial results.

Rewards stem solely from network-level incentives and fluctuate with market conditions.

Everstake also proposed some core criteria for excluding non-custodial staking from securities classification:

• User asset control

• No pooled funds

• Permissionless withdrawal

• Provision of technical services only

The company likens non-custodial staking to proof-of-work mining, which the SEC has previously not classified as a securities transaction.

Innovation at Risk Without Clarity

According to the company’s Chief Legal Officer, Margaret Rosenfeld, there is no asset handover, investment contract, or third-party risk in the non-custodial staking process. Therefore, subjecting it to securities regulation could threaten the development of decentralized technologies:

“Treating this model as a security would severely hinder innovation in the blockchain space.”

However, no definitive regulatory commitment has been made by the SEC so far. Rosenfeld stated that while the agency did not provide any guarantees, it continues to listen to industry stakeholders.

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Why Was the Dragonchain Lawsuit Dismissed?

In 2022, the SEC filed a lawsuit against Dragonchain and its affiliates over their 2017 initial coin offering (ICO). The SEC claimed that the project sold crypto assets that were considered securities to investors. However, the dismissal of the case was influenced by the SEC’s newly established Crypto Task Force in early 2025.

In the new era, the SEC’s stance on crypto has softened, especially after former chairman Gary Gensler’s departure and the change in political dynamics. The Trump administration’s return to power has led to a more moderate approach by the SEC.

Crypto Task Force and the New SEC Approach

The newly created SEC Crypto Task Force aims to be a reference point for determining which digital assets should be classified as securities. It was explicitly stated that community-driven and humorous memecoin projects do not fall under SEC’s jurisdiction.

In the statement submitted on Thursday, the SEC noted, “In light of current conditions and exercising its discretion, the Commission believes it is appropriate to dismiss this case.” With this decision, the legal uncertainty surrounding Dragonchain has been completely lifted.

Dragonchain’s Price Soars Following Lawsuit Dismissal!

Dragonchain’s acquittal from the SEC lawsuit led to a significant surge in its token price. Following the news, DRGN saw a 110% increase, rising from $0.39 to $0.83.

Currently, the token is trading at $0.73, indicating renewed investor confidence. This surge clearly demonstrates the market’s reaction to the removal of legal uncertainties surrounding the project.

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SEC to Host Roundtable on the Security Status of Digital Assets

The U.S. Securities and Exchange Commission’s (SEC) Crypto Task Force is set to hold a roundtable later this month focused on the “security status” of digital assets.

This announcement coincides with the agency revealing its staffing lineup for the task force, which includes a former major law firm crypto attorney alongside long-serving SEC personnel.

On March 3, the SEC announced a series of roundtables, dubbed the “Spring Sprint Toward Crypto Clarity,” to be held at its Washington, D.C. headquarters.

The first roundtable will kick off on March 21 with a discussion titled “How We Got Here and How We Get Out — Defining Security Status.”

Crypto Task Force leader Commissioner Hester Peirce said, “I look forward to drawing on the expertise of the public in developing a workable regulatory framework for crypto.”

SEC’s Acting Chairman Mark Uyeda launched the Crypto Task Force in late January to develop a crypto framework for the agency. One of President Donald Trump’s promises was to ease regulatory enforcement of the crypto industry.

Crypto Task Force Announces New Chief Counsel and Ends Kraken Lawsuit

The agency has recently dropped several lawsuits launched during the Biden administration, including its March 3 dismissal of the lawsuit against crypto exchange Kraken.

The SEC also announced the 14 members of its Crypto Task Force on the same day, naming Michael Selig as its Chief Counsel. Selig was a partner at Willkie Farr & Gallagher, where he advised crypto, NFT, and stablecoin firms. Former CFTC Chairman Chris Giancarlo congratulated Selig.

Crypto Task Force Personnel Appointments and Future Steps

Peirce’s former policy counsel, Sumeera Younis, was appointed the task force’s operations chief. Peirce stated that the crypto task force demonstrates deep expertise and enthusiasm in identifying workable solutions to crypto regulatory problems with support from the SEC staff and the public.

Last month, Uyeda made several personnel appointments to the task force.

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