CFTC Chairman Mike Selig on crypto, prediction markets and AI-powered market surveillance

Summary

CFTC Chairman Mike Selig discusses the joint SEC-CFTC crypto taxonomy that defines asset types and ends the Howey Test uncertainty. He argues for federal oversight of prediction markets, detailing ongoing lawsuits against states. He also outlines the agency's use of AI for market surveillance and the push for legislative clarity despite operating as a sole commissioner.

• Crypto taxonomy jointly issued by SEC and CFTC defines five asset buckets and ends Howey Test confusion.
• Rulemakings offer more durability than guidance; joint rules are harder to undo.
• CFTC provided a no-action letter to wallet developer Phantom, protecting self-custodial software developers.
• Selig asserts prediction markets are commodity derivatives and belong under CFTC jurisdiction, not state gaming.
• CFTC has sued multiple states to prevent nullification of federal authority over event contracts.
• The agency is deploying AI tools to review self-certified contracts and conduct market surveillance.
• Selig is the sole commissioner but argues the statute does not require a quorum, so he can continue rulemaking.
• He emphasizes making the US the global home for crypto innovation through clear rules and legislation.