The chairman of the U.S. CFTC announced plans to enhance regulatory clarity for DeFi, crypto derivatives, and prediction markets

According to CoinDesk, the chairman of the Commodity Futures Trading Commission (CFTC), Mike Selig, has updated the agency's ongoing plan to provide much-anticipated regulatory clarity for decentralized finance (DeFi) developers, crypto derivatives, and prediction markets.

Selig stated this week at the FIA Global Clearing Markets Conference in Boca Raton, Florida, that the U.S. is reclaiming its leadership in the digital asset space through closer coordination among regulators. He mentioned that he is advancing the "Project Crypto" initiative in collaboration with the chairman of the Securities and Exchange Commission (SEC), Paul Atkins, signaling the end of internal disputes between the CFTC and SEC. In his speech, Selig reiterated that the CFTC will issue guidance clarifying how so-called prediction markets (referred to as event contracts in regulation) can list and trade products under U.S. law, and will initiate a rulemaking process to seek public input on regulatory approaches for this rapidly growing sector. He noted that the CFTC also plans to address one of the most contentious regulatory issues in the crypto industry: "There has long been uncertainty about whether software providers trigger CFTC registration requirements," Selig said, "and we intend to tackle this issue head-on." The agency is also dealing with the classification of crypto perpetual derivatives, which dominate the global crypto market.