US Commodity Futures Trading Commission chair calls for clearer registration expectations for onchain systems and a crypto asset taxonomy

In remarks at the 9th Annual DC Blockchain Summit, Commodity Futures Trading Commission Chairman Michael S. Selig set out his view that decentralized finance and prediction markets are reshaping how trust is created in both financial and information systems, and argued that regulators should provide clearer, balanced rules to allow these technologies to develop in the United States. He framed the need for jurisdictional clarity as central to enabling compliant innovation, while noting his comments reflected his views as Chairman and not necessarily those of the Commission. He pointed to a recently announced Memorandum of Understanding between the CFTC and the Securities and Exchange Commission aimed at harmonizing regulatory initiatives, and argued that crypto policy should include a “commonsense taxonomy” to classify crypto assets and move away from the prior administration’s “ecosystem” theory of security status. He also called for staff engagement with market participants, including developers of onchain software such as digital wallets and DeFi protocols, to assess how existing regulatory requirements apply, if at all, and said it is “long overdue” for the Commission to clarify which onchain software systems are subject to registration and which are not, given varying degrees of decentralization. On prediction markets, he criticized prior efforts to restrict political prediction markets and emphasized the need for rules that protect consumers and prevent manipulation rather than attempts to outlaw such markets.