Commodity Futures Trading Commission (CFTC) Chairman Michael Selig told House lawmakers that the agency will pursue anyone who engages in fraud or trading in the futures markets “with the full force of the law.”
Selig appeared before the House Agriculture Committee on Thursday as the agency faces increasing pressure over a rapidly growing number of meetings and questionable trades related to political ads.
Forecasting Markets Under the CFTC Microscope
Selig told the committee that the Commodity Exchange Act gives the CFTC “broad, comprehensive jurisdiction” over commodity derivatives.
The chairman said he inherited self-certification agreements from previous administrations, when “the floodgates opened.”
The organization has already given information for legislative purposes establishing clear principles for market contracts.
Selig described a multi-level control system. The designated contract markets act as self-regulatory organizations and act as a first line of defense.
The CFTC oversees each contract certification and retains the authority to reject listings. The organization too He prosecuted several cases who tried to apply gambling laws to licensed market predictors.
Lawmakers Press Over $500 Million Oil Trade
Rep. McGovern brought up another incident from March 23, when someone put it in a difficult position $500 million in oil futures and equity trading Minutes before President Trump tweeted about the ceasefire talks on Truth Social.
Businesses are betting that oil prices will fall and incomes will rise.
“We have a zero-tolerance policy when it comes to fraud, abuse of marketing practices and fraud, and anyone who engages in this will face the full force of the law,” he said Selig, chairman of the CFTC.
Selig declined to confirm or deny any ongoing investigation, saying doing so would hinder public advocacy.
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CFTC-SEC Crypto Push and Solo Rulemaking
Beyond the pressure, Selig reviewed it the organization’s role in developing a crypto policy. The CFTC and the SEC signed a Memorandum of Understanding in March that coordinating the management of digital assetsstablecoins, are tokenized securities.
Selig said the two agencies have “failed to work well together” for a long time and that the MOU will establish a more open communication in analysis and policy making.
Member-elect Craig pressured Selig into pausing rulemaking while serving as the CFTC’s sole commissioner. Selig refused.
He told the committee that the safety of investors and the safety of the market cannot wait for other appointees.
The coming weeks may reveal whether this will lead to congressional changes or help the market predict what companies have been waiting for.
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A note CFTC Chairman Selig Vows to Crack Down on Market Prediction Fraud appeared for the first time BeInCrypto.
