CFTC Chair Michael Selig Signals Lighter Crypto Oversight Under ‘Future Proof’ Plan

Selig says the CFTC is ready to take on broader crypto oversight with targeted rules and updated market supervision.

Michael Selig is set to shake up regulations in his first month as chair of the U.S. derivatives regulator. He has outlined plans to reshape how the agency oversees crypto markets and other emerging products.

A new initiative, called “Future Proof,” signals a shift toward lighter and more targeted oversight as Congress debates a larger role for the agency in digital assets.

U.S. Derivatives Regulator Moves Toward Updated Crypto Framework

Speaking Tuesday, Michael Selig said the Commodity Futures Trading Commission needs an upgrade to keep pace with modern markets. Writing in a Washington Post column, he announced a broad review of existing rules, many of which were written decades ago. 

His goal is what he described as the “minimum effective dose of regulation,” aimed at allowing new products to develop without outdated limits.

Selig admitted that rules built for agricultural futures still work for those markets. However, he argued that they fall short when applied to digital assets and new trading venues. Financial firms have updated legacy systems with new technology, he said, and the regulator should follow suit. 

The review is meant to remove barriers that no longer serve today’s markets while keeping core protections in place.

Selig took office last month after being appointed by Donald Trump, as lawmakers consider bills to expand the CFTC’s authority over crypto. 

Progress slowed last week when the Senate Banking Committee delayed a hearing over disagreements tied to stablecoin rewards. Despite that setback, Selig said the agency is prepared to take on a wider role if Congress acts.

CFTC Signals Targeted Rules as Congress Weighs New Legislation

In his column, Selig wrote that new legislation would bring major responsibilities. He added that, if given authority, the CFTC would aim to keep crypto markets in the U.S. through rules tailored to the products traded, rather than broad mandates.

Selig outlined key ideas guiding the “Future Proof” effort:

• Review rules written for older crypto futures markets.
• Adjust oversight to fit crypto assets and new platforms.
• Focus on targeted protections rather than broad limits.
• Support innovation without weakening market integrity.
• Prepare staff and systems for expanded authority.

Another focus of the initiative involves prediction markets, which surged during the 2024 election cycle. Growth in these markets has drawn attention after reports raised concerns about insider trading. Lawmakers have also proposed bills to limit wagers tied to political events.

Former CFTC chair Rostin Behnam previously warned that election-related contracts carry risks. He argued that states, not federal regulators, should oversee them. 

Under the current administration, however, several firms have received approval to enter the crypto space. Some of the companies include Bitnomial, Gemini, Titan, LLC, Polymarket US, and MIAX Derivatives Exchange.

Selig defended prediction markets as tools used by traders to manage risk and test forecasts. In a recent social media post, he added that more policy changes will be announced in the coming days, signaling that the agency’s shift is only beginning.

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