CFTC Signals Broader Crypto Rulemaking
The Commodity Futures Trading Commission is preparing a sweeping regulatory agenda covering decentralized finance, prediction markets, and crypto derivatives, according to remarks by Chairman Michael Selig.
Speaking at the FIA Global Cleared Markets Conference in Boca Raton, Florida, Selig described the United States as the “crypto capital of the world” and emphasized the agency’s goal of delivering long-awaited regulatory clarity to the digital asset sector.
Selig said the CFTC is working more closely with the U.S. Securities and Exchange Commission to coordinate oversight of digital assets, highlighting the joint Project Crypto initiative with SEC Chair Paul Atkins.
He noted that the collaboration aims to eliminate years of regulatory friction between the two agencies.
Prediction Markets Under New Scrutiny
One of the CFTC’s key priorities is regulating prediction markets - known in regulatory language as event contracts. These platforms allow users to trade contracts tied to real-world outcomes such as elections, economic data, and geopolitical events.
Selig said the agency plans to issue formal guidance explaining how prediction markets can legally list and trade such contracts under U.S. law.
The CFTC also intends to launch a rulemaking process that will gather public input on how the rapidly growing sector should be supervised. Prediction markets have expanded significantly in recent years, moving from niche experiments into active trading ecosystems. However, the industry has faced legal challenges from several U.S. states questioning whether these contracts qualify as regulated derivatives.
Selig stressed that the CFTC will defend its jurisdiction in those disputes.
DeFi Developers Face Regulatory Questions
Another major issue under review is whether decentralized finance developers should be subject to CFTC registration requirements.
He indicated the agency intends to address the matter directly, potentially offering guidance that could shape how DeFi platforms and protocol developers operate under U.S. law.
The lack of clarity around developer liability has been one of the most contentious regulatory issues in the crypto industry.
Crypto Derivatives and Leveraged Trading
Selig also confirmed that the CFTC is examining several crypto trading structures that have historically operated in regulatory gray areas.
These include leveraged spot trading and the standards governing margined spot trading on digital asset exchanges.
The agency has also been reviewing guidance related to crypto perpetual derivatives, which represent one of the most widely traded instruments in global crypto markets.
Previous regulatory efforts under former acting chairman Caroline Pham began revisiting older rules concerning “actual delivery” standards in crypto transactions, with the goal of updating them for modern trading practices.
AI Trading Emerges as New Frontier
Selig also highlighted the rapid rise of artificial intelligence in financial markets, noting that automated trading systems are becoming increasingly influential in digital asset ecosystems.
Industry leaders have echoed this view.
Illia Polosukhin recently predicted that AI agents could soon become the primary users of blockchain networks, while Brian Armstrong suggested that AI-driven transactions may eventually outnumber those initiated by humans.
These developments, Selig said, will require regulators to adapt their frameworks to ensure innovation continues while maintaining market integrity.
A New Phase of U.S. Crypto Oversight
The CFTC’s expanding agenda signals a more proactive regulatory stance as digital assets become increasingly integrated into financial markets.
With Congress still debating broader crypto legislation, regulators appear prepared to use existing authority to address emerging sectors such as DeFi, prediction markets, and AI-powered trading.
For the crypto industry, the coming rulemaking process could shape how these technologies evolve within the U.S. regulatory landscape.
