CFTC Chair to Proceed with Rulemaking as Sole Commissioner

At a House Agriculture Committee hearing Thursday, CFTC Chair Michael Selig told lawmakers he will continue rulemaking on prediction markets and digital assets while serving as the agency’s sole commissioner.

Representative Angie Craig asked Selig to pledge not to finalize regulations without a full five-member, bipartisan commission. He responded that the agency must keep working and that he would not refrain from carrying out his responsibilities, stating, “In the interim, we cannot, for the sake of the American people, slow down in our rulemaking” and that he “cannot, unfortunately, commit to not do my job that I was appointed to do by the president.”

Selig has led the CFTC alone since December. As of the hearing, the White House had not announced nominations to refill the commission. Lawmakers from both parties questioned whether one commissioner should make major policy changes without a bipartisan panel.

He argued rulemaking is the proper way to clarify jurisdiction and protections and to avoid leaving key choices to staff discretion. In response to a question from Representative Don Davis, Selig told the panel, “We’re going to do more through rulemaking… We can’t have the staff deciding on discretion what the rules are.”

The agency in March proposed a rule that could change how event contracts on prediction markets are regulated. The CFTC has asserted exclusive jurisdiction over certain prediction-market products, a position that has conflicted with state gaming regulators.

Several states have filed lawsuits against prediction market operators, saying some platforms crossed into prohibited sports betting. Firms including Kalshi and Polymarket contend they fall under federal oversight by the CFTC. This month, judges in Arizona and New Jersey temporarily blocked state officials from taking action against Kalshi while legal questions proceed.

Representative Gabe Vasquez used a visual aid at the hearing to compare event contracts and state-authorized wagers, saying they are similar yet regulated differently. He argued the CFTC is exploiting legal gaps and warned of lost state revenue, adding, “The CFTC was not created or intended to regulate sports gambling.”

Lawmakers at the hearing highlighted competing goals: protecting investors and consumers, preserving state authority and revenue, and creating clear rules for markets that allow bets on political events, public-health outcomes and other real-world events. Some members urged caution and bipartisan agreement before finalizing major rules; Selig warned that delaying rulework could leave markets and consumers without protections.