CFTC's Ties to Crypto and Prediction Markets Raise Concerns

A new fact sheet by Better Markets, a non-profit organization, has raised concerns about the Commodity Futures Trading Commission's (CFTC) relationship with the industries it is supposed to regulate. The CFTC's Innovation Advisory Committee (IAC) has 35 members, but over half of them represent crypto and prediction markets.

This raises questions about the CFTC's ability to act in the public interest when so many of its advisors have a vested interest in promoting these industries. According to Benjamin Schiffrin, Director of Securities Policy for Better Markets, 'Americans are broadly skeptical of crypto and prediction markets', with 63% of adults saying they don't trust cryptocurrencies.

The CFTC's Chair, Mike Selig, has the power to act unilaterally, and it appears that he is willing to give in to the demands of the industries his advisors represent. Schiffrin notes that 'Chair Selig is the only commissioner at the agency', which means he can make decisions without needing to get approval from others.