CFTC Chair Mike Selig Warns Crypto Critics Risk Another FTX Collapse

CFTC Chair Mike Selig warned Friday that opponents of a proposed crypto regulatory framework could increase the risk of another FTX-style collapse by preserving the status quo.

Selig said the proposal would establish a federal framework designed to protect exchange customers from fraud, market manipulation and the theft of customer funds. He pointed to the failures exposed by FTX as an example of the risks the framework is intended to address.

He also criticized opponents who object to market-based oversight for crypto exchanges. Selig said their position effectively favors fraudsters, manipulators and other actors who could exploit weaker protections and harm U.S. consumers.

The comments place customer protection and the risk of another major exchange failure at the center of the debate over the CFTC’s proposed rules.