During his November 19 nomination hearing for CFTC chair earlier than the Senate Committee on Agriculture, Nutrition and Forestry, Michael Selig — presently chief counsel for the SEC Crypto Task Force — confronted intensive questioning from Senators Tina Smith (D-MN), Cory Booker (D-NJ), Elissa Slotkin (D-MI) and Adam Schiff (D-CA) relating to sports activities occasion contracts and sports activities playing. These senators raised issues about prediction market platforms providing contracts on sports activities outcomes, potential conflicts with state and tribal gaming legal guidelines, and the necessity for sturdy client safety and market integrity.
In response, Selig persistently emphasised that the regulatory standing of sports activities occasion contracts is a posh authorized situation greatest resolved by the courts. He acknowledged that it could be irresponsible to prejudge whether or not particular contracts represent “gaming” or “sports gambling,” and repeatedly affirmed his intention to defer to judicial choices and implement the legislation as interpreted by the courts if confirmed.
When requested concerning the CFTC’s prohibition on gaming-related occasion contracts below the Commodity Exchange Act, Selig didn’t affirm the existence of a transparent prohibition. Instead, he careworn the interpretive challenges concerned, saying, “I intend to always adhere to the law and follow what judicial decisions tell me to follow,” and “I will let the court [decide].”
In addition to deferring to judicial interpretation, Selig emphasised that making certain market integrity and defending towards manipulation is a core CFTC accountability for all merchandise it regulates — together with sports activities occasion contracts, if they’re traded on CFTC-regulated markets.
On November 20, Chairman John Boozman (R-AR) announced the Senate Agriculture Committee had superior Selig’s nomination out of committee, the place it awaits consideration by the complete U.S. Senate. Boozman notes this can be a “critical moment” for the CFTC, as Congress weighs laws that would develop the company’s authority, and urged the Senate to “swiftly confirm” Selig’s nomination.
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