Agencies Must Create Clear Prediction Market Rules to Avoid FTX-Style ‘Implosions’: CFTC Chair

US CFTC Chairman: Unregulated prediction markets could be the next FTX

Key Insights CFTC Chair says pushing prediction markets platforms offshore could create a collapse similar to FTX in the sector. The chair wants prediction platforms to be registered with the CFTC in the US for proper oversight. CFTC is collaborating with the SEC and other regulators on creating a uniform regulatory regime for crypto and prediction markets. The US Commodity Futures Trading Commission (CFTC) chair, Michael Selig, has warned of t…

Unregulated Prediction Markets Could Trigger FTX-Level Collapse, CFTC Chair Cautions

TL;DR: CFTC Chairman Michael Selig warned that unregulated, offshore prediction markets could suffer FTX-style collapses if U.S. agencies fail to set rules and protections. He said the CFTC has clear jurisdiction and wants exchanges to register domestically instead of operating in loosely supervised markets without guardrails. The sector is facing insider-trading scrutiny, state lawsuits, a new rulemaking process, and an Innovation Task Force f…

CFTC Chair Urges Clear Prediction Market Rules to Prevent FTX-Style Collapses

CFTC warns prediction markets may face FTX-like risks without clear U.S. regulation. Kalshi and Polymarket’s growth raises concerns as offshore trading exposes investors. Regulators and banks push for clearer rules as prediction markets attract major capital. Prediction markets are growing fast, but without clear rules, they could face another FTX-style collapse, warned Commodity Futures Trading Commission Chair Michael Selig. In an interview wi…

Agencies Must Create Clear Prediction Market Rules to Avoid FTX-Style ‘Implosions’: CFTC Chair

Michael Selig argued that prediction markets operating offshore in “unregulated space” could lead to an FTX-style collapse.