Quick summary
CFTC Chairman Michael Selig says the Clarity Act is close, with new August 7 deadline
Selig stresses need for a unified federal crypto standard, criticizing current state patchwork
Polymarket and Kalshi handled $24 billion in prediction market volume last year, a tenfold increase
CFTC seeks exclusive jurisdiction as Clarity Act debates ethics, stablecoin yields, and DeFi language
CFTC Chairman Michael Selig has told CNBC that the Clarity Act is "so close" to passing, even as Congress missed its July 4th deadline and faces a new one on August 7th. In the same interview, Selig broke down why Polymarket and Kalshi alone processed $24 billion in volume last year, a tenfold jump, and what that means for crypto regulation going forward.
Clarity act status: "We're so close, we have to get this done. It's critical that we have a federal standard for crypto assets. Right now [there's] a patchwork of state laws and regulation, and it's been bad for business in the United States."
Prediction markets are staying: "This is a market that is here to stay like crypto and we need to get clear rules."
Crypto's early days as the blueprint: "If you look at crypto, for example, the use cases were narrow in the beginning and we saw the explosion of products and services that run on blockchains, we'll see the exact same thing."
State jurisdiction fights: "We will fight to make sure that the CFTC has exclusive jurisdiction... we sued nine states and we will sue any state that imposes criminal or civil fines against CFTC exchanges."
The Clarity Act's fate now hinges on whether ethics provisions, the stablecoin-yield rules, and DeFi language all get resolved before the August 7th cutoff.
Selig's comments suggest the CFTC sees prediction markets following crypto's exact regulatory arc: narrow beginnings, explosive growth, then a scramble for federal standards.
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FAQ
What is the current status of the Clarity Act and its deadlines?
Michael Selig said the Clarity Act is "so close" to passing. Congress missed its July 4th deadline and now faces a new cutoff on August 7th.
Why does Michael Selig believe a federal standard for crypto assets is critical?
He says there is currently a patchwork of state laws and regulation, which has been bad for business in the United States, so a federal standard is critical.
How large have prediction markets like Polymarket and Kalshi become?
Polymarket and Kalshi alone processed $24 billion in volume last year, representing a tenfold jump.
What jurisdiction stance is the CFTC taking regarding prediction markets and state actions?
Selig says the CFTC will fight to ensure it has exclusive jurisdiction, noting that it sued nine states and will sue any state that imposes criminal or civil fines against CFTC exchanges.
Disclaimer
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Written by
Andrew Kamsky
Andrew Kamsky is a Bitcoin analyst. He spent a decade in traditional finance across a Big Four firm and a listed fintech bank before going deep on Bitcoin full-time.
