Commodity Futures Trading Commission (CFTC) Chairman Michael Selig told House lawmakers the agency will pursue anyone committing fraud or insider trading in prediction markets with “the full force of the law.”

Selig appeared before the House Agriculture Committee on Thursday as the agency faces mounting pressure over fast-growing event contract platforms and suspicious trades tied to political announcements.

Selig told the committee that the Commodity Exchange Act grants the CFTC “very broad, exclusive jurisdiction” over commodity derivatives.

CFTC Chair @ChairmanSelig is under pressure on Capitol Hill, facing lawmakers.

As debates heat up over prediction markets, an insider oil trading probe, and the rollout of Project Crypto with @SECGov.

Notably, he’s doing it all as the agency’s sole commissioner, and tensions… pic.twitter.com/kyYqqZPkl0

The chairman said he inherited a wave of self-certified event contracts from the prior administration, when “the floodgates really opened.”

The agency has since issued an advance notice of proposed rulemaking to set clearer standards for prediction market contracts.

Selig described a multi-layered oversight system. Designated contract markets serve as self-regulatory organizations and act as the first line of defense.

The CFTC reviews every contract self-certification and retains authority to reject listings. The agency also sued multiple states that attempted to apply gambling laws to licensed prediction market operators.

Rep. McGovern raised a specific incident from March 23, when someone placed roughly $500 million in oil and equities futures trades minutes before President Trump posted about ceasefire talks on Truth Social.

The trades bet oil prices would drop and equities would rally.

“We have a zero tolerance policy when it comes to fraud, abuse of trading practices and manipulation, and anyone who engages in that behavior will face the full force of the law,” said Selig, chair of the CFTC.

Selig declined to confirm or deny any active investigation, stating that doing so would hinder enforcement efforts.

Follow us on X to get the latest news as it happens

Beyond enforcement, Selig highlighted the agency’s role in shaping crypto policy. The CFTC and SEC signed a Memorandum of Understanding in March to coordinate on digital asset oversight, stablecoins, and tokenized collateral.

Selig said the two agencies had “failed to work well together” for too long and that the MOU would establish open communication on surveillance and policymaking.

As Project Crypto is now a joint initiative, aligning haircut treatment with @SECgov for registered entities represents yet another step toward in delivering clear, consistent rules of the road for market participants. 

Read the @CFTC staff’s new FAQs that clarify the staff’s… https://t.co/vJD5ikh1Ae

Ranking Member Craig pressed Selig on whether he would pause rulemaking while serving as the CFTC’s only sitting commissioner. Selig refused.

He told the committee that investor protections and market safeguards could not wait for additional nominees.

The coming weeks may reveal whether that stance draws further congressional pushback or accelerates the prediction market framework the industry has been waiting for.

Subscribe to our YouTube channel to watch leaders and journalists provide expert insights

The post CFTC Chair Selig Vows To Stop Prediction Market Fraud appeared first on BeInCrypto.

Bitcoin price in Telegram @btc_price_every_hour

275 +