TLDR CFTC Chairman Michael Selig scrapped a 2024 proposal that would have banned sports and political event contracts Selig launched “Project Crypto” with the SEC to create joint rules and a shared crypto-asset taxonomy The CFTC is claiming exclusive federal jurisdiction over prediction markets, putting it on a collision course with states like Nevada New rules will cover DeFi registration, leveraged crypto spot trading, perpetual derivatives, and AI-driven trading systems Prediction platforms must accept tighter surveillance and insider-trading enforcement in exchange for regulatory clarity
The head of the U.S. Commodity Futures Trading Commission is pushing to bring prediction markets and crypto under one federal rulebook, ending years of legal uncertainty for both industries.
CFTC Chairman Michael Selig spoke at the FIA Global Cleared Markets Conference in Boca Raton, Florida, where he outlined the agency’s plans to regulate event contracts, crypto derivatives, and decentralized finance.
Selig said the U.S. is the “crypto capital of the world” and that the agency intends to be its primary regulator.
His first major step was withdrawing a 2024 proposal that would have effectively banned sports and politics-related event contracts. He also pulled a 2025 staff advisory that had warned platforms away from sports markets, saying it had “inadvertently added to the uncertainty present in our markets.”
In its place, the CFTC will launch a formal rulemaking process, asking the public for input on how prediction markets should be overseen. The agency views these markets as tools to hedge risk and gather information, not just gambling platforms.
Selig also announced “Project Crypto,” a joint initiative with the Securities and Exchange Commission. The two agencies, which have historically clashed over jurisdiction, are now working together on a shared crypto-asset taxonomy and expanded rules for tokenized collateral.
Federal vs. State: A Jurisdictional Fight Is Coming