CFTC Chair Mike Selig Launches ’Future‑Proof’ Rule Overhaul for Crypto, Prediction Markets and AI
CFTC Chair Mike Selig launched the “Future‑Proof” initiative to modernize the agency’s decades‑old rules for digital assets, blockchain trading venues, prediction markets, perpetuals and AI‑driven risk tools. Sworn in December 22, 2025, Selig criticized past enforcement‑led approaches that forced crypto businesses offshore and pledged a review and comprehensive rewrite of CFTC regulations using notice‑and‑comment rulemaking. The goal is tailored, “minimum‑effective” rules that protect against fraud and manipulation while enabling innovation and clearer market structure. Early actions include appointing Amir Zaidi as chief of staff and forming an Innovation Advisory Committee. The initiative builds on prior steps that eased spot trading on CFTC‑regulated platforms and offered no‑action relief for some prediction markets, but expands the effort into a full regulatory modernization. For traders, the program promises clearer rules for derivatives and prediction markets, potentially faster approvals and reduced legal uncertainty — but it may also bring new compliance requirements for platforms and products.
Neutral
The announcement is broadly neutral for crypto prices. Regulatory clarity and a move from enforcement toward tailored rulemaking typically reduce legal uncertainty — a constructive factor that can support long‑term adoption and institutional participation, which is mildly bullish over time. However, the initiative also signals new compliance requirements and a comprehensive rule rewrite, which can introduce short‑term costs and operational changes for platforms and products. Because the news centers on regulatory process (review, rulemaking, advisory appointments) rather than immediate permissive approvals or bans, it is unlikely to trigger a decisive immediate price move. Traders should expect reduced policy uncertainty over the medium term (supportive), balanced by potential short‑term volatility as stakeholders react to proposed rules and compliance deadlines.