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CFTC Chair Selig tells CNBC crypto industry is embracing agency rules as legislation hopes fade
CFTC Chair Mike Selig says crypto firms are adopting the agency’s rules, as hopes for new legislation fade. His approach could give businesses clearer federal guidance, but the rules may face greater congressional scrutiny after the 2026 midterm elections.
Selig said he hopes the US avoids software developers moving offshore and wants bipartisan safeguards for developers acting lawfully, while holding fraudsters accountable. He said he would answer Congress’s questions. Democrats have also criticised the CFTC’s support for prediction markets: 23 senators urged Selig in February to reverse course, while the agency has sued states seeking to regulate the markets and says it may take the dispute to the Supreme Court.
In short
- Crypto firms are embracing the CFTC’s rules.
- Selig expects to answer congressional scrutiny.
- The agency is fighting states over prediction markets.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
With legislation stalled, the CFTC’s existing rules can give crypto firms clearer federal expectations and let the industry develop without waiting for Congress. Selig’s approach also seeks to keep software developers who act lawfully in the US while preserving accountability for fraud, and a single federal framework may offer more consistency than conflicting state rules.
The case against
Rules set by an agency may not provide the durable, democratically settled safeguards that legislation could, and their direction or scrutiny may shift with political changes. The CFTC’s support for prediction markets and its lawsuits against states raise concerns that federal oversight could displace state protections; congressional scrutiny could help test whether the agency’s approach has adequate authority and public accountability.