Podcast Summary

Episode Overview

Episode: Making America the Crypto Capital of the World | New CFTC Chairman Michael Selig
Podcast: Bankless
Date: March 9, 2026
Host: Ryan Sean Adams (Bankless)
Guest: Mike Selig, Chairman of the CFTC

Main Theme:
This episode features an in-depth conversation with Mike Selig, the new Chairman of the Commodity Futures Trading Commission (CFTC). The discussion centers around Selig’s vision for making the U.S. the global capital for crypto, setting regulatory clarity, embracing innovation through technologies like blockchain, prediction markets, and AI, and ending the regulatory uncertainties and adversarial tone of the previous administration.

Key Discussion Points & Insights

Selig’s Background, Role, and Motivation

• Selig’s Journey:

  • Worked with “crypto dad” at the CFTC, spent a decade as a lawyer representing crypto firms, joined the SEC’s crypto task force in 2025, and became CFTC Chairman in December 2025.
  • “I want to make sure that if we do get the next Gary Gensler, the rules and the statutes are very clear and they keep this stuff here for the long term.” (Mike Selig, 00:00)

• Mission at CFTC:

  • To ensure long-term clarity and a positive environment for innovation in crypto and adjacent technologies.
  • Collaborating closely with the White House and SEC on legislation like the Clarity Act.
  • Focused on supporting perpetuals and digital asset products.

The Transformation of Commodities Markets

• Current Revolution:

  • Selig emphasized three technologies: blockchain/crypto assets, prediction markets, and AI are rapidly reshaping markets and information.
  • The prior administration sought to "debank" innovators and push crypto offshore (05:21).
  • New focus: “Bring that back... make sure there's a clear path for companies that want to innovate... here in the United States.” (Mike Selig, 05:21)

• AI & Algorithmic Fairness:

  • Selig is wary of biased or ideological algorithms: “We've got to make sure those algorithms... have integrity and that they're not pushing WOKE or, you know, biased ideologies on users.” (07:25)

Commodities, Definitions & CFTC’s Authority

• What is a Commodity?

  • The CFTC’s regulatory authority covers a very broad spectrum: anything underlying a derivatives contract—agricultural, metals, digital assets, services, rights, interests, political, sports events, etc.
  • Exclusions: only onions and movie box office receipts (09:36).
  • “The idea has been to include a wide range of different types of products... It's never been this idea that it's just an agricultural market or certain types of… physical commodities.” (09:36)

• CFTC’s Market Role:

  • Regulates derivatives, not all spot markets, but does have anti-fraud/anti-manipulation remit.
  • Clarity Act may expand their spot market authority (10:59).

Prediction Markets and Event Contracts

• Repealing the 2024 Event Contract Rule:

  • Selig reversed the proposed ban on political and sports event contracts:
    • “A very biased rule proposal that sought to ban political event contracts ahead of the 2024 election... concerted effort to ensure that... truth that comes out with these markets does not have the light of day...” (12:15)
  • Commitment to “a market for everything,” but with proper integrity and anti-manipulation surveillance.

• Regulatory Structure:

  • Prediction/event contracts now considered swaps under Dodd-Frank; some are futures depending on structure (13:59).
  • Exchanges self-regulate, but CFTC oversees and enforces high standards for market integrity (15:45).

• Policing and Enforcement:

  • Recent examples: Kalshi exchange penalizing insiders—a Mr. Beast staffer and a political candidate trading on private info (18:09).

• The Role of AI:

  • The CFTC uses AI for market surveillance and fraud detection (19:47).

• Jurisdiction Over Prediction Markets:

  • U.S. states have brought suits, arguing sports betting is “gaming.”
  • Selig: CFTC holds primary federal jurisdiction; “We do not share jurisdiction with the states there or anybody else.” (20:34)

• Defining “Gaming” and Public Interest:

  • The statutory definition of “gaming” is unclear and left to courts; CFTC is focusing first on jurisdiction (23:00).
  • The definition of “public interest” is evolving, with Selig pushing for clear standards beyond prior administrations (24:00).

Clarity for Crypto Assets: Clarity Act, Project Crypto, and Market Structure

• The Clarity Act’s Purpose:

  • To define crypto commodities vs. securities.
  • Selig supports statutory clarity to avoid “rulemaking by enforcement” and regulatory whiplash if future administrations revert to a hostile stance (29:47).

• Regulatory Actions Without Legislation:

  • Regulatory agencies (CFTC and SEC) have started laying interim rulemaking, though true certainty requires an act of Congress:
    • “We certainly can interpret ... the Howie test ... but that does not mean that it's going to supplant the case law itself.” (33:13)
  • Statutory clarity would “future proof” U.S. markets.

• Project Crypto:

  • Joint CFTC & SEC effort to modernize regulations for tokenization, on-chain financial applications, and harmonize standards.
  • Addresses offshore movement by bringing DeFi back to the U.S. and reducing duplicative oversight (36:26).

• End of SEC vs. CFTC Turf War:

  • “Rest in peace, it is.” – Selig on the turf war (38:57)

Protecting Software Developers and Permissionless Innovation

• Regulatory Safe Harbors:

  • Clarifying who is an intermediary and who is not—key for DeFi and wallet developers.
  • Working on an “innovation exemption” to let projects find product-market fit before full registration required (40:13).
  • “Permissionless innovation is really important. Thomas Edison didn't have to go ask for permission to innovate.” (40:13)

• Layer 2 Networks & Fine Lines:

  • Advocating fit-for-purpose rules for networks with partial control, emphasizing the CFTC’s principles-based approach (44:09).

• New Open-Door Policy:

  • “We don't hand out Wells notices for coming into the building anymore... We want our innovators to be building great things here in the United States.” (45:41)

Onshoring Perpetual Derivatives

• Backing Perpetuals:
  • Selig wants perpetuals (crypto derivative contracts without expirations) onshore, ending the U.S. ban.
  • Plans to clarify how perpetuals can be self-certified and to relax Dodd-Frank swap regulations where not warranted (46:58).

Shift in Regulatory Tone and Philosophy

• Contrast with Prior Administration:

  • Previous regime was “de-accelerationist,” hostile to innovation and markets.
  • Current philosophy: pro market, pro innovation, anti-paternalism.
    • “We want the builders here, we want innovation here, we want new things like prediction markets to flourish here.” (51:20)

• Key Values:

  • Markets over central planning, supporting innovation, openness to automation and neutrality.
  • Avoiding stifling paternalism:
    • “I don't think we should get in the business of being paternalistic and saying, okay, prediction markets are bad for this country.” (51:20)

The Vision for the U.S. as Crypto Capital

• Five-Year Outlook:

  • A “permissionless innovation environment” with an innovation exemption and mainstream on-chain markets (54:24).
  • Statutory clarity to ensure that the next restrictive regulator cannot undo progress.

• Clarity Act’s Importance:

  • Removing ambiguity on commodities vs. securities, creating a single federal market structure for spot exchanges, and curbing states’ ability to stifle innovation through local regulation (56:28).

Notable Quotes & Memorable Moments

• Setting a Pro-Innovation Tone:

  • “We don't hand out Wells notices for coming into the building anymore.”
    — Mike Selig (45:41)

• On Regulatory Philosophy:

  • “This fear of the future and things that are new has been to me the biggest threat to our country. And we really have to turn the tide on that.”
    — Mike Selig (51:20)

• On the New Relationship with Industry:

  • “It is now safe to go in the office. Okay. At the CFTC.”
    — Ryan Sean Adams (58:39)

• On the SEC vs. CFTC Turf War:

  • “Yes. Rest in peace, it is.”
    — Mike Selig (38:57)

Timestamps for Key Segments

• Why Mike Selig Came to the CFTC – [01:12]
• Defining Commodities & CFTC Role – [07:44]
• Prediction Markets, Event Contracts, and Rule Reversal – [12:15]
• Enforcement, Market Surveillance, and AI – [18:09]
• Jurisdictional Fights with States and 'Gaming' Definition – [20:34]
• Clarity Act & Project Crypto Explained – [29:47]
• End of SEC vs. CFTC Turf War – [38:49]
• Safe Harbor for Developers and Innovation Exemption – [40:13]
• Open Door Policy Restated – [45:41]
• Onshoring Perpetuals & Novel Derivatives – [46:34]
• Philosophy Change & Regulatory Tone – [51:20]
• Vision for U.S. as Crypto Capital – [54:24]
• Clarity Act’s Critical Components – [56:28]

Closing Thoughts

Mike Selig’s CFTC is ushering in a new era of regulatory clarity, innovation, and partnership with crypto builders. With an open-door policy, cross-agency harmonization, and a commitment to future-proofing through the Clarity Act, the U.S. aims to solidify its position as the world’s premier environment for digital assets and decentralized innovation.