CFTC Chair Mike Selig Calls for Crypto, AI, and Prediction Market Rules

CFTC Chair Selig signals new crypto, AI, and prediction market rules as Kalshi tightens insider trading controls.

CFTC Chair Mike Selig has called for targeted regulations across crypto, AI, and prediction markets. He shared the stance in a recent post on X. 

He described the technologies as interconnected and transformative. 

Moreover, he said regulators must support innovation and job creation. The agency plans to design rules that match how these sectors operate.

CFTC crypto and AI regulation strategy

Selig stated that the CFTC will develop fit-for-purpose rules for emerging technologies. He emphasized the need to align regulation with innovation. 

According to his post, the goal is to let these sectors grow within the United States. He also pointed to entrepreneurs as key drivers of progress.

Crypto, AI and prediction markets are transformative and synergistic technologies. It’s critical that our laws and regulations accommodate the innovators and job makers in these industries, like @APompliano, who is an entrepreneur and investor himself.

The @CFTC will develop… pic.twitter.com/aSB1A4urf3

— Mike Selig (@ChairmanSelig) March 27, 2026

Additionally, Selig highlighted collaboration with industry leaders. A video attached to the post outlined this approach. 

The agency plans to engage crypto founders and exchange executives. This includes voices from both digital asset firms and traditional finance.

He mentioned figures such as Coinbase CEO Brian Armstrong and CME Group’s Terry Duffy. Prediction market operators like Shane Copeland will also contribute. The effort aims to bring technical expertise into regulatory discussions. 

Consequently, the agency seeks more informed rulemaking.

Earlier guidance from regulators adds context to this move. Joint clarification from the SEC and CFTC addressed digital commodities. This initiative builds on that foundation. However, reactions on social media remain mixed.

Prediction Markets Rules and Kalshi Compliance Move

Alongside regulatory discussions, prediction market platforms are tightening controls. 

According to an earlier LiveBitcoinNews report, Kalshi plans new restrictions. The platform will block certain users from trading on related markets. This includes athletes, coaches, and political candidates.

Full story here:

Kalshi Blocks Athletes and Politicians From Trading

Kalshi already had rules limiting such activity.

However, the new step introduces technical enforcement. It prevents restricted users from placing trades entirely. This aims to reduce insider trading risks.

Moreover, the update reflects growing scrutiny in prediction markets. Regulators and platforms now focus on fairness and transparency. 

Kalshi’s move shows how companies respond to compliance pressure. It also aligns with broader regulatory signals from agencies.