CFTC chairman Michael S. Selig has launched a “Future-Proof” initiative to rewrite crypto regulations and end enforcement-based policymaking that drove U.S. companies offshore.
CFTC Shifts From Lawsuits To Rule-Writing
Selig on Tuesday announced the agency will stop using enforcement actions to set crypto policy and instead write formal rules through public notice-and-comment processes.
The difference matters because formal rules are permanent and future administrations cannot easily reverse them.
Biden-era agencies used guidance documents and enforcement actions, which Trump regulators erased on day one.
“We will end regulation by enforcement and ensure new markets flourish at home with tailored rules,” Selig wrote in a Washington Post op-ed.
The CFTC will review all existing regulations designed for agricultural futures contracts and modernize them for blockchain assets, AI-powered trading, and prediction markets.
Why Crypto Companies Left The U.S.
The Biden administration’s enforcement-first strategy forced many crypto businesses to move operations overseas to avoid unclear legal risks.
Selig blamed this approach for costing “everyday Americans” as innovation and jobs fled to jurisdictions with clearer rules.
The digital asset market has grown to over $3 trillion, but regulatory uncertainty kept institutional money on the sidelines and pushed entrepreneurs abroad.
Now the CFTC positions itself as the primary U.S. crypto regulator if Congress passes pending legislation that would formalize the agency’s role overseeing digital asset spot and derivatives markets.
Prediction Markets And Perpetual Futures Included
Selig specifically called out prediction markets and perpetual futures as areas getting updated rules.
Prediction markets have surged in popularity as tools for hedging portfolio risks and forecasting outcomes.
The timing matters as platforms like Polymarket face bans in multiple countries while potentially finding clearer legal ground in the U.S.
The CFTC hired Michael Passalacqua, a crypto lawyer who worked at exchange CrossTower and major law firms, to help develop the framework.
The “Minimum Effective Dose” Approach
Selig says the CFTC will provide the “minimum effective dose of regulation—nothing more and nothing less.”
That means ditching arbitrary rules that don’t fit new products and creating tailored frameworks for blockchain-native markets, prediction platforms, and AI trading systems.
An Innovation Advisory Committee will guide the process, though Selig hasn’t announced members or specific timelines yet.
What This Means For Markets
The initiative creates a path for crypto businesses to operate legally in the U.S. under clear rules instead of navigating enforcement risk.
If Congress passes digital asset legislation, the CFTC gets broad authority over crypto spot markets and derivatives—potentially unlocking institutional capital that’s waited for regulatory clarity.
Selig promised “additional policy changes in the days ahead” but the core message is clear: the CFTC wants to be the crypto-friendly regulator that keeps innovation in America instead of driving it offshore.
Image: Shutterstock
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