Crypto Companies and Prediction Markets are Advising the CFTC

Introduction 

Voters are broadly skeptical of the crypto industry.Over 70% of voters believe crypto benefits insiders, criminals, and scammers.63% of adults say cryptocurrencies are not to be trusted.

Prediction markets fare no better. Just 4% of Americans say that prediction markets are good for society.Surveys show over and over that most Americans view prediction markets as gambling.

So why is the Commodity Futures Trading Commission (CFTC) doing everything it can to expose Americans to these risky products? Less than nine months into the tenure of CFTC Chair Mike Selig, it is clear that the CFTC will give the crypto industry and prediction market platforms anything they want. The reason may be simply that it is these industries that have Chair Selig’s ear.

Today, the CFTC will have the first meeting of its Innovation Advisory Committee (IAC).Chair Selig formed the IAC himself. Its ostensible purpose is “to gather expertise and recommendations on innovation in financial markets.” Although innovation in our financial markets could take many forms, Chair Selig seems focused on promoting crypto and prediction markets. Two of the committee’s three panels will focus on crypto and prediction markets, with AI being the other one.