CFTC Proposes Sweeping Regulatory Overhaul for Crypto and Markets

CFTC Chairman Michael S. Selig has unveiled an extensive regulatory makeover aimed at modernizing the agency's approach to crypto and financial markets.

The plan, called 'future-proofing', involves shifting away from a strict enforcement posture and towards a more principles-based oversight model, which Selig refers to as a 'minimum effective dose' of regulation.

Key components of the framework include a unified taxonomy for digital assets, bringing perpetual futures under U.S. regulatory control, and expanding collateral rules to permit high-quality tokenized assets in derivatives clearing.

The CFTC also plans to establish itself as the primary regulator for event contracts, or prediction markets, which have grown significantly in recent years with monthly volumes reaching $13 billion by late 2025.