CFTC News

The memorandum of understanding with CFTC Chair Michael Selig comes as many US state authorities are cracking down on sports event contracts on prediction markets.

The Washington, D.C.-based nonprofit cryptocurrency policy think tank argued that no-action letters within the crypto industry lead to fragmentation and uneven treatment.

The no-action position taken by the US regulator under Chair Michael Selig will allow the company to engage in certain activities without registering as a broker.

The SEC has proposed narrowing Rule 15c2-11 to equity securities only, and is now seeking comment on whether it should apply to certain crypto assets, among other questions. 

Iran-linked contracts drove prediction market activity higher as the CFTC opened rulemaking and Democrats moved to ban war and death bets.

“This ends today,“ said CFTC Chair Michael Selig, who has been reiterating his position that the agency has exclusive jurisdiction overseeing prediction markets platforms.

The SEC and CFTC said they would adopt a “minimum effective dose” regulatory strategy to foster innovation while maintaining market integrity and keep the US competitive globally.

Democratic Senator Adam Schiff introduced a bill to ban prediction markets related to war, death and terrorism amid escalating insider trading concerns related to military operations.

The prediction markets platform argued for an injunction against Ohio authorities, claiming that federal commodities laws superseded state laws on sports event contracts.

Paul Atkins said that he had stopped ”duplicative enforcement actions” between the SEC and CFTC, stressing the need for a coordinated approach.

Michael Selig said blockchain-powered prediction markets could improve price discovery and public information, even as several US states challenge the platforms in court.

If the CLARITY Act fails to pass, Giancarlo said he expects Paul Atkins at the SEC and Mike Selig at the CFTC will likely write rules to create clarity for the industry.

SEC Chair Paul Atkins and CFTC Chair Michael Selig addressed market structure, prediction markets and perpetual futures at a Tuesday event.

While the White House has hosted three meetings to discuss how to address stablecoin yield in the Senate's market structure bill, there are no signs of a solution.

CFTC chair Mike Selig said the agency established a prediction markets advisory to help catch insider traders, warning there would be consequences.