CFTC Chairman Selig Testifies on Prediction Markets, Crypto, and Enforcement in April 2026

CFTC Chairman Michael S. Selig testified before the U.S. House Committee on Agriculture on April 16, 2026, presenting the agency's regulatory agenda for crypto assets, prediction markets, and commodity derivatives enforcement. The testimony, delivered approximately 100 days after Selig's swearing-in as the 16th CFTC Chairman, outlined completed actions and forward regulatory commitments across three priority areas relevant to digital asset and prediction market participants.

The testimony identifies the Commodity Exchange Act, 7 U.S.C. § 1 et seq., as the CFTC's primary statutory authority over prediction markets and crypto asset commodities. Selig confirmed that the CFTC joined an SEC interpretation published March 17, 2026, resolving which crypto assets are commodities subject to CFTC jurisdiction and which are securities subject to SEC oversight. The testimony references: (1) CFTC Staff Letter 25-39 on tokenized collateral, (2) the no-action position in Staff Letter 26-05 regarding digital assets as margin collateral, and (3) the CFTC's no-action position to Phantom Technologies Inc. for self-custodial wallet software, issued under Release 9197-26. On prediction markets, Selig confirmed that the CFTC issued an Advanced Notice of Proposed Rulemaking under CEA § 5(b) and filed complaints against Arizona, Connecticut, and Illinois seeking declaratory judgments affirming the CFTC's exclusive jurisdiction over event contracts.

Designated contract market operators, crypto asset exchanges, futures commission merchants, and introducing brokers must assess their activities against the new joint SEC-CFTC crypto asset interpretation. DCMs listing event contracts must comply with the staff advisory issued concurrently with the ANPRM and should expect formal rulemaking to follow. Firms holding tokenized collateral or digital assets as margin must follow CFTC Staff Letters 25-39 and 26-05. Self-custodial wallet developers providing trading facilitation services to CFTC-registered entities should review the no-action conditions in Release 9197-26 to confirm coverage.

Selig's testimony signals that enforcement in the crypto and prediction market sectors will continue aggressively, with the Chairman stating that fraud, manipulation, and insider trading in any CFTC-regulated market will be prosecuted to the full extent of the law. The ANPRM comment period closes 45 days after Federal Register publication, creating an immediate window for market participants to submit comments. Bipartisan market structure legislation referenced by Selig — notably the CLARITY Act — remains pending in Congress; its enactment would codify the joint crypto interpretation into statute.

Our firm advises prediction market operators, crypto asset platforms, and commodity derivatives participants on CFTC regulatory compliance and enforcement matters. We maintain a dedicated partner network for digital asset commodity law, event contract structuring, DCM compliance, introducing broker obligations, and CFTC rulemaking participation, and we welcome inquiries from clients in these sectors.

Source: Testimony of Chairman Michael S. Selig Before the U.S. House Committee on Agriculture, April 16, 2026, https://www.cftc.gov/PressRoom/SpeechesTestimony/opaselig4; CFTC Release No. 9198-26, March 17, 2026, https://www.cftc.gov/PressRoom/PressReleases/9198-26; CFTC Release No. 9194-26, March 12, 2026, https://www.cftc.gov/PressRoom/PressReleases/9194-26 (confirmed April 23, 2026).

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