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Mike Selig, the new chairman of the US Commodity Futures Trading Commission, used an op‑ed this week to lay out his plan for reshaping financial regulation.
He argued that the agency must move past what he called years of “regulation by enforcement” and instead set clear rules designed for digital assets, prediction markets, and other fast‑moving technologies.
Selig described the moment as critical for US markets in both his policy statement and opinion piece. He pointed to blockchain and artificial intelligence as forces creating products and platforms that older laws were never built to handle. “Advances in technology are transforming the financial services landscape as we know it,” he said.
Selig also highlighted Congress’s work on the Digital Asset Market Clarity Act, which he said is “on the cusp” of passage. The measure would give the CFTC direct authority over large parts of the crypto economy, formally positioning the agency as a lead regulator in the space.
Selig says prediction markets require unique regulatory frameworks
The new chairman outlined a new direction for the CFTC, saying the agency will apply what he called “the minimum effective dose of regulation.”
He explained that the goal was to guard against fraud, manipulation, and abuse while still leaving room for innovation. Selig added that future rules should be built through notice‑and‑comment procedures so they can stand firm across different administrations.
He went on to point to the rapid rise of prediction markets and digital assets as proof that older laws no longer fit. Crypto that was once niche has now grown into a market worth more than $3 trillion, with Selig arguing that such scale demands frameworks designed for these technologies rather than patched‑on fixes.
“Anyone with a smartphone and an internet connection can now access peer‑to‑peer markets that operate around the clock,” he said.
“If Congress passes market structure legislation and hands us the torch, we will ensure these markets flourish at home,” he added. “The great innovations of today and tomorrow should be made in America.”
States score big win in battle against prediction markets
While the CFTC under Selig is pushing for new rules to give prediction markets a clearer framework, states are showing they can still draw their own lines.
Massachusetts just became the first to move Kalshi off sports contracts, with a Suffolk Superior Court ruling that the company must follow local betting laws if it wants to operate there.
Judge Christopher Barry‑Smith rejected Kalshi’s claim that federal commodities oversight protects it, writing that Congress never stripped states of authority in this area.
He also dismissed claims that a Massachusetts ban would cause severe financial harm, pointing out that Kalshi expanded into states with licensing rules even after federal regulators warned it to proceed carefully amid ongoing enforcement.
The decision means the Attorney General can now seek an order to block Kalshi from taking new trades in the state, a ban that could take effect within days. For prediction markets, it’s a reminder that even as federal regulators talk about modernization, state courts are willing to step in and treat these platforms like sports betting.
Source: Bitcoin Magazine
