TLDR
- The CFTC chairman outlined a broad agenda covering DeFi, crypto derivatives, and prediction markets.
- He confirmed the agency will issue guidance on event contracts and launch a formal rulemaking process.
- He said the CFTC and SEC ended past conflicts and now coordinate under the Project Crypto initiative.
- The chairman stated that the agency will assert its authority over prediction markets in court.
- He said the CFTC will clarify whether DeFi software providers must register with the regulator.
The head of the Commodity Futures Trading Commission (CFTC) outlined a broad digital asset agenda this week. He detailed plans covering DeFi developers, crypto derivatives, and prediction markets. He also stressed stronger coordination with the Securities and Exchange Commission.
CFTC Moves to Clarify Prediction Markets Oversight
CFTC Chairman Mike Selig spoke at the FIA Global Cleared Markets Conference in Boca Raton, Florida. He said the United States is reclaiming leadership in digital assets. He added that regulators now work more closely together. He stated that he and SEC Chairman Paul Atkins ended the interagency conflict. He said they partnered on the “Project Crypto initiative.”
Selig said the CFTC will issue guidance on prediction markets, known as event contracts. He confirmed the agency will launch a rulemaking process and seek public input. He explained that these platforms now allow trading on elections and economic outcomes. He said, “Market participants deserve clarity,” and pledged active oversight. He added that the agency will defend its authority in court.
He repeated that the CFTC must act as the regulator for these markets. He said several U.S. states continue to challenge the agency’s jurisdiction.
He stated, “We will continue to assess litigation strategies to make sure the agency’s voice is heard.”
He emphasized that clear rules will support lawful trading. He confirmed that staff will begin drafting formal proposals soon.
DeFi Developers and Crypto Derivatives Face New Guidance
Selig said the CFTC will address regulatory questions affecting DeFi developers. He stated that software providers face uncertainty over registration duties. He said, “For too long, there has been an open question as to whether software providers trigger the CFTC’s registration requirements.” He confirmed that the agency will answer this question directly. He added that clear standards will guide compliance efforts.
He said the CFTC is reviewing leveraged crypto spot trading structures. He noted that some platforms have operated in gray areas under current law. He explained that the agency is evaluating standards for margined spot trading. He referenced prior efforts to revise “actual delivery” guidance. He confirmed that staff will draft updated rules for industry practices.
Selig also addressed crypto perpetual derivatives, which dominate global digital asset markets. He said the agency continues to analyze how U.S. law classifies these products. He stated that the CFTC will define consistent standards for exchanges offering them. He added that regulators must support innovation while enforcing compliance. He pointed to the growing use of artificial intelligence in trading systems.
He said automated systems now shape activity across digital markets. He stressed that regulators must create frameworks that support new technologies. He referenced comments from NEAR co-founder Illia Polosukhin on AI agents using blockchains.
