CFTC’s Michael Selig Confronts Legal Storm as Crypto, Sports Betting Soar

• Michael Selig tackles CFTC’s legal battles and staff shortages as crypto momentum surges.
• Prediction markets and sports betting ignite clashes with state regulators under Selig’s watch.

On January 15, 2026, CoinDesk reported that Michael Selig, the newly appointed chair of the Commodity Futures Trading Commission (CFTC), faces mounting legal disputes and operational challenges as crypto adoption and prediction markets surge. Selig assumed his role in December 2025, entering a fragmented regulatory environment marked by heightened scrutiny and legal disputes with state regulators.

The CFTC oversees the rapidly growing prediction markets industry, now valued in the billions. Much of this expansion comes from sports betting, with platforms like Kalshi reportedly deriving over 90% of their trading volume from sports-related wagers. However, this growth has triggered a jurisdictional battle with state regulators, who argue such event contracts constitute gambling and should fall under state law. Several states have issued cease-and-desist orders against platforms such as Kalshi, Crypto.com, and Robinhood. Adding to the tension, the American Gaming Association and the Indian Gaming Association have called on Congress to impose tighter restrictions on sports-themed prediction markets, citing regulatory gaps and potential consumer harm.

Complicating matters further, the NCAA recently requested that the CFTC halt prediction markets involving college sports until a robust regulatory framework is established. Selig, who has previously opposed restrictions on these markets, now faces the task of balancing these concerns with the need to maintain market integrity. Reports suggest his first step is engaging lawmakers to clarify the agency's approach to these contentious issues.

Internally, the CFTC is grappling with significant staffing shortages that threaten its ability to handle its expanding responsibilities. By October 2025, the agency had lost approximately 15% of its workforce, leaving it with only 540 employees. This comes as the CFTC’s mandate extends further into digital assets, an increasingly critical component of financial markets. Selig has prioritized recruiting new leadership and reassessing the agency’s operational framework to address these challenges.

Concerns have also arisen over exchange applications approved during the tenure of the CFTC’s previous acting chair, Caroline Pham. Allegations claim that firms such as Gemini Space Station and Polymarket used expedited review processes that bypassed standard approval procedures. The CFTC is now reportedly re-examining these processes to ensure regulatory consistency and compliance.

The agency’s emerging role in cryptocurrency markets remains an unresolved topic of legislative debate. In 2025, the CFTC approved the first U.S. spot cryptocurrency trading on regulated exchanges, a milestone in the growing digital asset industry. Despite this, Congress has yet to solidify the CFTC’s jurisdiction, leaving its broader influence in cryptocurrency markets unclear.

Currently, Selig is the only commissioner in an agency designed to have five, placing the dual burden of addressing legal and political challenges alongside resource constraints squarely on his shoulders. His success in restoring the agency’s operations and protecting market integrity will likely define the CFTC’s ability to adapt in an era of digital and financial innovation.

The White House is reportedly preparing a bipartisan slate of commissioners to support Selig, though no appointments have been finalized. As the CFTC navigates these escalating legal, operational, and policy challenges, the stakes for Selig’s leadership remain higher than ever.