New CFTC Chairman Michael Selig on How to Regulate Prediction Markets

The conversation centers on the burgeoning prediction markets, their regulatory landscape, and potential overlaps with gambling. CFTC Chairman Mike Selig discusses the agency's approach to regulating these markets, emphasizing a principles-based system that prioritizes market integrity and investor protection rather than dictating what contracts can be traded. He addresses concerns about insider trading, the distinction between prediction markets and sports betting, and the potential for conflicts of interest given the involvement of political figures. Selig also highlights the need for increased coordination between the CFTC and SEC to effectively regulate crypto assets and blockchain-based markets, noting the importance of establishing clear rules of the road to foster innovation while safeguarding investors.