CFTC Chair Selig Vows Fraud Crackdown on Prediction Markets
CFTC Chair Michael Selig is pursuing a lighter regulatory approach to prediction markets after reversing two years of restrictions within weeks of taking office in December 2025.
Key Takeaway
Selig reversed two years of restrictions in weeks, signaling lighter-touch oversight for prediction markets.
CFTC Chair Michael Selig told Congress the agency will pursue fraud in prediction markets while defending his approach to rulemaking as the sole commissioner.
Selig took the helm after Senate confirmation on December 18, 2025, and was sworn in four days later as the 16th chairman of the Commodity Futures Trading Commission. Within weeks, he reversed course on prediction market oversight — withdrawing a 2024 proposed rule that would have banned political and sports-related event contracts. He also pulled back a 2025 staff advisory that warned against sports-related event contracts. By March, Selig directed staff to draft new guidance and announced plans for public feedback through an advance notice of proposed rulemaking.
Selig's regulatory philosophy leans toward principles-based regulation, arguing in a Wall Street Journal op-ed that prediction markets help hedge risk and aggregate information. He warned against regulation by enforcement and pushing activity into black markets, stating the agency should focus on rules that work for Americans. Event contracts have operated under CFTC oversight for over two decades.
The approach drew criticism from Illinois Governor JB Pritzker, who accused the Trump administration of carrying water for companies driving insider trading schemes. By March 2026, Selig directed staff to draft new guidance for the markets.
This article was written based on reporting from BeInCrypto.
