In his first month as chair of the U.S. Commodity Futures Trading Commission (CFTC), Michael Selig has announced a major new regulatory initiative aimed at modernizing the agency's approach to digital assets. Dubbed the "Future Proof" initiative, the plan seeks to overhaul decades-old rules to better accommodate emerging financial technologies like cryptocurrencies and prediction markets.
Selig, who was appointed by President Donald Trump and assumed the role in December 2025, outlined his vision in a Washington Post column and a series of posts on X. He stated the derivatives regulator needs an "upgrade" and will conduct a broad review of its rules with the goal of adopting what he described as the "minimum effective dose of regulation."
"While decades-old rules designed for agricultural futures contracts may still suit those markets today, they do not contemplate nascent products or trading venues," Selig wrote. "Just as American businesses are modernizing legacy financial systems by harnessing new technologies, the CFTC must upgrade its approach to unleash innovation."
The announcement comes at a pivotal time, as lawmakers in Congress are actively debating legislation that would significantly broaden the CFTC's authority over the digital asset industry. Selig emphasized the agency's readiness, stating, "Should Congress deliver on making America the crypto capital of the world and send digital asset market structure legislation to the president’s desk, the CFTC will have a broad set of new responsibilities. Pass us the torch, and we will ensure that these markets flourish at home with tailored regulatory frameworks that keep American markets the best in the world."
The initiative also encompasses the rapidly growing prediction markets sector, which surged in popularity during the 2024 election cycle. Selig noted, "Prediction markets have exploded in popularity as broad swaths of market participants seek to hedge portfolio risks and test their abilities to forecast truth." The CFTC, under the Trump administration, has already granted several firms permission to operate in this arena, including Gemini Titan, Polymarket US, MIAX Derivatives Exchange, and Bitnomial.
To guide this effort, Selig has formed an Innovation Advisory Committee to help develop forward-looking policies. He has also hired Michael Passalacqua, a former crypto lawyer with experience at exchange CrossTower and major law firms, to assist with the rulemaking process. Selig promised more "policy changes" would be announced in the coming days.
