The top US regulator for financial markets has a message for the crypto industry: start getting ready for oversight, because it is on the way.
Selig made the comments on Bloomberg Television before the CFTC's first Innovation Advisory Committee meeting.
The CFTC is monitoring the progress of the Clarity Act, a bill stuck in the Senate that would make the agency the main regulator for the digital-asset industry. A procedural vote is scheduled for mid-September, but unresolved issues may block passage before the November midterms. The delay is partly tied to an ethics dispute involving President Donald Trump's $1.4 billion cryptocurrency windfall.
Selig called legislation "the most surefire way to lock in crypto market structure" and the surest path to durable rules. But he made it clear the agency will not wait forever.
"If we have to utilize that authority to create rules without the supporting legislation, we'll do it," Selig said.
The CFTC has authority under existing law, he argued, so it can act on its own if Congress keeps stalling. That gives the industry a clear picture: the rules are coming either way.
Later that same day, Selig said the CFTC is exploring a new regulated venue called a crypto asset market. This would allow for leveraged or margin trading, which could bring offshore platforms that currently avoid US registration into the country legally.
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Trump said at a White House event Wednesday that Selig was looking into bringing Hyperliquid, a popular crypto exchange, into the US market in a way that is "fully compliant and legal."
The CFTC is also talking with on-chain finance companies about how they can operate under US law. That could give major offshore platforms a clear route to do business here, which Selig says is better than the current setup.
"When I came into this seat, Pandora's box was sort of open," Selig said. "There were all of these novel instruments and contracts trading in our markets."
Prediction markets have been a major focus for the CFTC this year. Selig said rules for event contracts on platforms like Polymarket US, Kalshi, and Underdog would be completed "very soon." The agency has proposed tightening rules on bets connected to war, terrorism, and assassination, while also proposing a narrow definition of some "gaming" as games decided only by luck, which would let most current sports contracts keep trading.
The CFTC also wants stronger protections for retail customers, and Selig said the agency heard the feedback. "We've heard the commenters loud and clear that they want more consumer protections for retail and we're going to implement that as well," he said.
Meanwhile, the agency is diving into AI. Selig opened a public-input effort on AI compute futures, which are derivatives tied to computing power. Exchanges including Intercontinental Exchange Inc., Architect Financial Technologies Inc., and CME Group Inc. plan to offer those contracts, pending approval. The CFTC is working with the Commerce Department on standards, and Selig made it clear he does not want weak products hitting the market.
"If America is going to win the AI race, we have to dominate in compute markets," Selig said. "This is the most important commodity, I think, of our time." He warned against letting in "a bunch of bad products" and promised updates in the coming months.
For everyday investors, this is about more than regulatory paperwork. The CFTC is the only sitting commissioner on a planned five-member bipartisan commission, which gives Selig a lot of room to move quickly on these issues.
The message is that crypto trading, prediction markets, and even AI-linked bets are not going anywhere. They are becoming part of the mainstream financial system, which means more protections for regular people who want to participate.
That could be good news if you have been curious about these markets but worried about the risks. Tighter oversight often brings more confidence, and more confidence can bring more money off the sidelines. Whether that is a good thing depends on how well the rules are written.
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