CFTC Chairman Michael Selig said parts of the crypto market are showing “too much manipulation instead of trading… fraud”, warning that regulators are paying closer attention to risks building across the digital asset sector. Speaking on the All-In Podcast, he pointed to growing concern around market structure in exchanges, derivatives venues, and on-chain trading systems.
Stopping another FTX remains a top regulatory objective
Selig made clear that preventing a repeat of FTX’s 2022 collapse remains central to the agency’s approach. The exchange’s failure erased billions of dollars in customer funds and badly damaged trust across the crypto industry. He said, “We can’t have another FTX in the United States where funds are lost, and there’s an absolute fraud on our American people.”
That view is shaping the CFTC’s priorities. The agency is concentrating heavily on enforcement against fraud, insider trading, and manipulation in crypto-related trading markets.
Prediction markets draw closer scrutiny
Selig also addressed the rapid rise of prediction markets, where users trade contracts linked to future events such as elections, sports outcomes, or commodity prices. He said event-based derivatives have long served a legitimate economic function by helping businesses and investors hedge risks tied to real-world outcomes.
At the same time, he said some newer products may be more exposed to insider trading or market manipulation. Selig referenced recent enforcement actions involving individuals who used inside information to trade prediction contracts. Under U.S. law, exchanges listing these products must make sure the contracts cannot be easily manipulated and that safeguards against insider trading are in place.
Tighter oversight without pushing innovation offshore
Even with those concerns, Selig said regulators do not want crypto innovation to leave the United States. The goal, in his description, is to build a structure where blockchain-based markets can operate safely inside the country. He said the CFTC is already updating its regulatory framework to prepare for on-chain trading platforms and blockchain-based exchanges.
Selig added that the agency already has broad authority to enforce anti-fraud and anti-manipulation rules in crypto markets. The message from the commission is blunt: market development can continue, but under stricter controls.