CFTC Chair Michael Selig Unveils Roadmap for Crypto, AI Compute, and Prediction Markets

The Commodity Futures Trading Commission on August 21, 2026 published an Advanced Notice of Proposed Rulemaking seeking public comment on a comprehensive regulatory framework for retail commodity transactions involving crypto assets, which the agency calls CTXs. In Release Number 9307-26, Chairman Michael S. Selig said the action is a critical step in ensuring America remains the crypto capital of the world, and that the agency will take every necessary step to establish regulations designed to prevent, rather than only prosecute after the fact, fraudulent schemes such as FTX. The ANPRM asks for comment on preventing abusive practices, providing crypto-specific contextual information, and codifying a crypto asset market subcategory of designated contract market registration. Comments are due within 60 days of Federal Register publication.

Background

The CFTC's release frames the ANPRM as the start of new rulemakings grounded in the Commodity Exchange Act and in President Trump's directive to propose a federal crypto asset regulatory market structure using the agency's existing statutory authorities. The release states that the Commission has experience overseeing aspects of crypto asset markets since 2014, and that this experience informs its view of industry best practices for compliance with requirements attached to CTXs. The ANPRM concerns section 2(c)(2)(D) of the Commodity Exchange Act and retail commodity transactions described thereunder involving crypto assets. Separately, Cointelegraph reported on the same day that prediction market operator Underdog has partnered with crypto infrastructure provider zerohash to introduce cryptocurrency and stablecoin deposits, expected to launch later this year. 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. The two developments are distinct: one is a federal regulatory process, the other a private-sector product announcement.

What happened

The CFTC's Release Number 9307-26 states that the agency published an Advanced Notice of Proposed Rulemaking to provide notice of, and seek public comment regarding, its intent to establish a comprehensive regulatory framework of fit-for-purpose rules concerning section 2(c)(2)(D) of the Commodity Exchange Act and retail commodity transactions described thereunder involving crypto assets, which the release terms CTXs. The release quotes Chairman Michael S. Selig saying today's action is a critical step in the CFTC's ongoing efforts to ensure America remains the crypto capital of the world, and that the American people deserve clarity, certainty, and consumer protections in the crypto asset markets. The release states the Commission's announcement begins its process of new rulemakings grounded in the CEA's purpose and President Trump's directive to propose a federal crypto asset regulatory market structure using the CFTC's existing statutory authorities. The ANPRM solicits comment on how the Commission can prevent abusive practices in crypto asset markets and CTXs under a uniform national regime; provide market participants with crypto asset-specific contextual information concerning requirements and practices commonly accepted in the industry and found, based on the Commission's experience overseeing aspects of crypto asset markets since 2014, to represent industry best practices for compliance; and codify through rulemaking a subcategory of designated contract market registration known as a crypto asset market, purpose-built specifically for CTXs. The release states comments must be in writing and received within 60 days of the ANPRM's publication in the Federal Register, and that comments received will be posted on Regulations.gov. Cointelegraph separately reported that Underdog partnered with zerohash for crypto and stablecoin deposits, expected to launch later this year, supplementing debit and credit cards, Apple Pay and bank transfers, with no wallet addresses or network selection needed.

Market impact

The sources provide limited market figures. Cointelegraph 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. According to DeFiRate data cited by Cointelegraph, 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. The CFTC release contains no price, volume, or flow figures; it describes a comment process with a 60-day window after Federal Register publication. Cointelegraph noted Underdog did not specify which cryptocurrencies or stablecoins would be supported and did not respond to a request for clarification before publication. No figures on the number of comments, the size of the crypto asset market, or the expected economic effect of the proposed rules appear in either source.

Why it matters

The CFTC release supports the conclusion that the agency intends to use comments received to inform potential future agency action, such as a rulemaking, with respect to section 2(c)(2)(D) and CTXs. The release states 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, and that it aims to incorporate crypto asset transactions into its uniform national market regulatory framework. It also states the process is grounded in President Trump's directive to propose a federal crypto asset regulatory market structure using the CFTC's existing statutory authorities. The ANPRM's request to codify a crypto asset market subcategory of designated contract market registration indicates a possible structural change to how crypto platforms register, though the release frames this as a topic for comment rather than a final rule. For prediction markets, Cointelegraph's report on Underdog's zerohash partnership indicates private infrastructure is expanding alongside the federal process, with crypto deposits expected later this year, but the sources do not connect the two developments or state that the CFTC proposal addresses prediction market deposits.