Immediate implications and near-term priorities

Enforcement posture: Chairman Selig has described the CFTC as a “strong cop on the beat,” but it is yet to be seen whether the CFTC, under his leadership, continues along the recent pivot away from “regulation by enforcement” and prosecution for technical, no-harm violations. Under Acting Chairman Pham, the CFTC’s Enforcement Division focused primarily on fraud, manipulation, and customer-harm based cases. Process reforms to the Wells and enforcement framework adopted under Acting Chairman Pham are likely to endure, though.

Digital assets: We anticipate that the CFTC will deepen coordination with the SEC and other agencies on crypto market structure, safe harbors, and cross-market rulemakings. Building on Pham’s “Crypto Sprint,” we expect continued growth of leveraged or margined spot crypto contracts on futures exchanges, tokenized collateral (including stablecoins), and blockchain-ready derivatives rules.

Regulatory recalibration: Chairman Selig has signaled support for simplifying rules, curbing “unwritten law” via staff guidance and no-action letters, and reducing duplicative burdens – especially for dually registered entities – continuing a back-to-basics trajectory.

Event contracts: On sports and other prediction markets, Chairman Selig has indicated deference to ongoing litigation and potential congressional clarification, suggesting limited near-term CFTC rulemaking while key appeals proceed.

Outlook

Chairman Selig’s confirmation signals continuity on enforcement fundamentals, a pragmatic but forward-leaning approach to digital assets and market innovation, and a renewed push to streamline regulatory obligations.