Prediction markets are central to CFTC regulatory reform, Selig says

Commodity Futures Trading Commission (CFTC) Chairman Mike Selig announces a review and modernization of financial markets regulation, including the inclusion of prediction markets.

Selig has written an op-ed promising a « new course » for the CFTC, starting with the Future-Proof initiative. This will begin with a review of the agency’s existing rules and regulations with a view to modernizing those requirements in light of current technology and innovation.

The Innovation Advisory Committee will play a key role in safeguarding the future @CFTCthe agency’s regulatory approach by advising the agency as it develops targeted rules for prediction markets, digital assets and other emerging asset classes. /8

— Mike Selig (@ChairmanSelig) January 20, 2026

Specifically, Selig highlights prediction markets, blockchain and the use of AI to hedge risks in investments and trading. He criticized the Biden administration for over-regulating the financial space and emphasized that the CFTC’s future will be focused on providing the « minimum effective dose of regulation. »

« Arbitrary, cumbersome, and opaque rules will not stand the test of time, » Selig wrote. « The CFTC’s approach should be to provide the minimum effective dose of regulation — nothing more and nothing less. That means an end to policymaking through enforcement. And that means the agency’s policymaking divisions will develop clear traffic rules for market participants that will be codified through notice-and-comment rulemaking to ensure that regulatory requirements don’t change abruptly from administration to administration. »

Selig’s plan appears to be to make permanent changes codified into law. The goal seems to be to support new products and developments such as cryptocurrencies, prediction markets and NFTs.

The future of the CFTC has presidential support

Selig specifically mentioned President Donald Trump’s involvement, writing: « To achieve what the president may call a golden age of American financial markets, regulators must break with the rigid and restrictive regulatory practices of the past. The CFTC will seize this generational opportunity to modernize and future-proof its approach to regulation and ensure that the great innovations of today and tomorrow are made in America. »

Given that he also referred to the goal of making America the crypto capital of the world, it’s worth noting that President Trump and his family have benefited directly from crypto products, even launching currencies associated with their personal brands. Donald Trump Jr. has invested in and sits on the advisory board of prediction market Polymaket, while the president’s own social media platform, Truth Social, has also launched its own prediction market, another area Selig appears keen to support.

Featured Image: US Committee on Agriculture, Food, and Forestry