U.S. Securities and Exchange Commission Chair Paul Atkins publicly backed Commodity Futures Trading Commission Chair Michael Selig on Tuesday, pushing back against concerns that the smaller derivatives agency lacks the resources to effectively oversee the rapidly growing prediction markets sector. During a CNBC interview, Atkins called Selig “capable” and said he is “doing a great job at the CFTC,” adding that Selig is actively working to understand innovative trading products worldwide.
The defense comes amid heightened scrutiny of prediction markets — platforms that let users bet on event outcomes ranging from elections to sports and alien confirmations. Companies like Polymarket and Kalshi surged in popularity after the 2024 U.S. elections and are now valued in the billions. The CFTC has moved aggressively to assert its authority, suing multiple states to gain “exclusive jurisdiction” over sports betting prediction markets and, just last week, proposing a sweeping rule that would greenlight such bets while restricting wagers on terrorism and assassinations.
Critics point to a stark resource disparity. For fiscal year 2027, the CFTC requested $410 million — a 12.3% increase — while the SEC asked for $1.908 billion. Personnel numbers are equally lopsided: the CFTC has about 550 employees versus the SEC’s more than 4,000. Selig is currently the agency’s lone commissioner, with four seats vacant, and the proposed rule passed with only his affirmative vote.
The tension over resources was underscored during an April congressional hearing when House Agriculture Chair Glenn “GT” Thompson reminded Selig of the heavy workload. Selig later posted on X that the CFTC is “recruiting the best and brightest” and employing artificial intelligence to detect insider trading. Atkins’ endorsement may signal that the SEC is comfortable with the CFTC taking the lead on prediction markets, a jurisdictional stance that could also influence the broader debate over which agency should regulate the crypto industry.
