Commodity Futures Trading Commission chair launches Future-Proof initiative to modernize agency rules for emerging markets

In a Washington Post op-ed, Commodity Futures Trading Commission (CFTC) Chairman Michael S. Selig said he has launched the agency’s “Future-Proof” initiative, under which staff will conduct a comprehensive review of existing rules and regulations and modernize requirements to better accommodate novel products and trading venues, including digital assets and prediction markets. The initiative is positioned as a move toward fit-for-purpose requirements and a “minimum effective dose” of regulation, paired with an end to “policymaking through enforcement”. Selig wrote that the CFTC’s policymaking divisions should develop clearer rules for market participants and codify them through notice-and-comment rulemaking to reduce volatility in requirements across administrations, while ensuring a level playing field for incumbents and new entrants. He framed this work as preparation for potential digital asset market structure legislation in Congress, which he said could give the CFTC a broad set of new responsibilities, but did not provide a timeline for the review or any subsequent rulemakings.