CFTC Chairman Reveals: Next Stop – Crypto, Computing Power Markets, and Prediction Markets

On August 21, 2026, the Commodity Futures Trading Commission published an Advanced Notice of Proposed Rulemaking seeking public comment on a regulatory framework for retail commodity transactions involving crypto assets, which the agency calls CTXs. In Release Number 9307-26, the CFTC said it intends to establish fit-for-purpose rules under section 2(c)(2)(D) of the Commodity Exchange Act. Chairman Michael S. Selig said the action is a critical step in ensuring America remains the crypto capital of the world. The same day, Cointelegraph reported that prediction market operator Underdog partnered with zerohash to add crypto and stablecoin deposits, expected later this year.

Background

The CFTC's release states that the agency has overseen aspects of crypto asset markets since 2014 and that its experience informs the best practices it now seeks to codify. The ANPRM follows what the release describes as President Trump's directive to propose a federal crypto asset regulatory market structure using the CFTC's existing statutory authorities. Chairman Selig said the Commission will take every necessary step to establish regulations designed to prevent, rather than only prosecute after the fact, fraudulent schemes such as FTX. The release also notes that comments must be received within 60 days of the ANPRM's publication in the Federal Register and will be posted on Regulations.gov. Separately, Cointelegraph reported that Underdog, founded in 2020, has more than 11 million registered accounts according to IG Group, which agreed in July to acquire the company in a deal worth up to $1.3 billion, expected to close in late 2026 or early 2027. Underdog's new funding option will supplement existing methods including debit and credit cards, Apple Pay and bank transfers.

What happened

The CFTC's Release Number 9307-26, dated October 05, 2026 in the text but published August 21, 2026, announces an ANPRM on a comprehensive regulatory framework for section 2(c)(2)(D) of the Commodity Exchange Act and retail commodity transactions involving crypto assets, termed CTXs. The release states that the ANPRM solicits comment on three topics: preventing abusive practices in crypto asset markets and CTXs under a uniform national regime; providing market participants with crypto asset-specific contextual information about requirements and practices commonly accepted in the industry and found, based on the Commission's experience since 2014, to represent industry best practices; and codifying through rulemaking a subcategory of designated contract market registration known as a crypto asset market, purpose-built for CTXs. The release quotes Chairman Selig saying the action is a critical step in ensuring America remains the crypto capital of the world and that the American people deserve clarity, certainty, and consumer protections. The Commission intends to use comments to inform potential future agency action, such as a rulemaking. Comments must be in writing and received within 60 days of Federal Register publication and will be posted on Regulations.gov. Cointelegraph reported that Underdog partnered with zerohash to introduce cryptocurrency and stablecoin deposits, expected to launch later this year, allowing eligible users to fund accounts directly through the Underdog app with near-instant transfers around the clock. Underdog did not specify which cryptocurrencies or stablecoins would be supported and did not respond to Cointelegraph's request for clarification before publication. Users will not need to manage wallet addresses or select blockchain networks.

Market impact

The sources provide limited market figures. Cointelegraph reported, citing DeFiRate data, that Underdog recorded $1.4 billion in trading volume over the 30 days ending Oct. 21, a 133% increase from the previous period, though it remained well behind Kalshi's $81.5 billion and the combined $17.2 billion recorded by Polymarket's US and international platforms. Cointelegraph also reported that Underdog has more than 11 million registered accounts, according to IG Group, which agreed in July to acquire the company in a deal worth up to $1.3 billion, with the transaction expected to close in late 2026 or early 2027. The CFTC release contains no price, volume or flow figures. It states that comments must be received within 60 days of the ANPRM's publication in the Federal Register. No figures on crypto asset prices or trading flows are present in the CFTC source. The sources do not provide any figures on the size of the crypto asset markets the CFTC proposal would cover.

Why it matters

The CFTC's ANPRM, as described in its release, begins a process that could bring retail crypto asset transactions into what the agency calls its uniform national market regulatory framework. The release states the Commission intends to codify a subcategory of designated contract market registration known as a crypto asset market, purpose-built for CTXs, and to provide crypto asset-specific contextual information about industry best practices. Chairman Selig said the regulations are designed to prevent, rather than only prosecute after the fact, fraudulent schemes such as FTX. The release ties the effort to President Trump's directive to propose a federal crypto asset regulatory market structure using existing statutory authorities. For prediction markets, Cointelegraph reported that Underdog's crypto deposit option, expected later this year, will supplement existing funding methods and will not require users to manage wallet addresses or select blockchain networks. Cointelegraph reported that Underdog's 30-day trading volume ending Oct. 21 was $1.4 billion, a 133% increase from the previous period, while Kalshi recorded $81.5 billion and Polymarket's US and international platforms combined recorded $17.2 billion.