WASHINGTON, D.C.— Benjamin Schiffrin, Director of Securities Policy for Better Markets, issued the following statement in connection with Better Markets’ new Fact Sheet entitled “Crypto Companies and Prediction Markets are Advising the CFTC”:  

“Americans are broadly skeptical of crypto and prediction markets. 63% of adults say that cryptocurrencies are not to be trusted, and just 4% of Americans say that prediction markets are good for society. So why is the Commodity Futures Trading Commission (CFTC) doing everything it can to boost these industries and expose Americans to their risky products? 

“Today’s inaugural meeting of the CFTC’s Innovation Advisory Committee (IAC) helps explain why the CFTC would be promoting policies against the interest of the American people. Even though federal law requires that an agency advisory committee have balanced viewpoints, over half of the IAC’s 35 members are from crypto and prediction markets.  

• The IAC has 16 members who represent crypto and decentralized finance.  

• The IAC has five members who represent prediction markets.  

• The other members represent exchanges, clearing agencies, financial services firms, trade organizations, venture capital, and academia. 

Despite the IAC’s own charter saying it will include public interest groups, it does not. Given who is advising the CFTC, it is not surprising that under Chair Mike Selig, the agency is willing to give the crypto industry and prediction market platforms anything they want.  

“Crypto companies and prediction markets advising the CFTC is especially pernicious given that Chair Selig is the only commissioner at the agency. This means he can, and does, act unilaterally. When taking action, the CFTC laughably says that Chair Selig voted in the affirmative and no Commissioner voted in the negative. No Commissioner voted in the negative because there are no other Commissioners. It appears that the only other people with any say in what the CFTC does are the members of the IAC. They need to persuade only Chair Selig to take action on their behalf, and Chair Selig is the one who appointed them to the IAC in the first place. This state of affairs may benefit the industries the CFTC is supposed to regulate, but at the expense of the American people, who lack a seat at the CFTC’s table.” 

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Better Markets is a non-profit, non-partisan, and independent organization founded in the wake of the 2008 financial crisis to promote the public interest in the financial markets, support the financial reform of Wall Street and make our financial system work for all Americans again. Better Markets works with allies—including many in finance—to promote pro-market, pro-business and pro-growth policies that help build a stronger, safer financial system that protects and promotes Americans’ jobs, savings, retirements and more. To learn more, visit www.bettermarkets.org.