In his first month as chair of the U.S. Commodity Futures Trading Commission (CFTC), Michael S. Selig announced a sweeping modernization plan for the commodity regulator.
In a column published on The Washington Post on Jan. 20, Selig said the CFTC is “charting a new course” through a “Future Proof” initiative designed to update outdated rules that still reflect the agency’s agricultural roots.
“While decades-old rules designed for agricultural futures contracts may still suit those markets today, they do not contemplate nascent products or trading venues,” Selig wrote. “Just as American businesses are modernizing legacy financial systems by harnessing new technologies, the CFTC must upgrade its approach to unleash innovation.”
Appointed by President Donald Trump, Selig took office last month as Congress debates the Digital Asset Market Clarity Act, a bill that would expand the CFTC’s authority over digital assets.
The legislation’s progress slowed last week after the Senate Banking Committee postponed a hearing over disputes on stablecoin rewards.
However, Selig said the CFTC is ready to act once lawmakers deliver clarity.
'Minimum Effective Dose' of Regulation
Selig said the agency’s modernization effort aims to deliver the “minimum effective dose of regulation," enough to ensure market integrity without stifling innovation.
“Should Congress deliver on making America the crypto capital of the world and send digital asset market structure legislation to the president’s desk, the CFTC will have a broad set of new responsibilities,” he wrote.
He added that lawmakers should “pass the torch” to the agency, adding that the CFTC would ensure domestic markets flourish under tailored regulatory frameworks designed to keep U.S. markets among the strongest globally.
The Future Proof initiative will analyze the CFTC’s existing rules and recommend updates for digital asset products, decentralized trading venues, and other emerging derivatives markets.
Additional Developments
- •Avalanche Policy Coalition urges SEC, CFTC to fold crypto into existing market rules
- •U.S. pension fund makes surprise buy of Michael Saylor’s Strategy
- •Billionaire who paid $4.6M for dinner with Buffett, says he’d spend $30M for an hour with Elon Musk
Prediction Markets Next in Line
Selig also highlighted the agency’s growing oversight of prediction markets.
Since the 2024 election cycle, prediction markets have attracted both popularity and concerns over insider trading and political wagering.
“Prediction markets have exploded in popularity as broad swaths of market participants seek to hedge portfolio risks and test their abilities to forecast truth,” Selig wrote.
The Trump administration has greenlit firms including Gemini Titan, Polymarket US, MIAX Derivatives Exchange, and Bitnomial, to enter the prediction market sector.
Selig added on X that additional “policy changes” would be announced in the coming days.
CFTC approves first-ever spot crypto trading on regulated exchanges.