WASHINGTON, D.C.—Benjamin Schiffrin, Director of Securities Policy for Better Markets, issued the following statement in connection with Better Markets’ new Fact Sheet, “Key Questions Senators Should Ask Mike Selig, the Nominee to Chair the Commodity Futures Trading Commission”:    

“Mike Selig, President Trump’s nominee to chair the CFTC, is set to appear before the Senate Agriculture Committee later today. Given that the CFTC’s role has long been to regulate markets that directly affect the prices of everyday essentials such as food, gas, and electricity, and that the financial industry wants it to assume responsibilities in newer markets such as crypto and prediction markets, the job of CFTC Chair has never been more important. The next chair must prioritize the interests of the American people and not the interests of the industries the CFTC is supposed to regulate.”  

Our new fact sheet discusses ten issues facing the CFTC along with the questions about those issues that Senators should ask Mr. Selig. A few of those topics and questions are: 

• Without new legislation, the CFTC has no authority to regulate spot trading of commodities on CFTC-registered designated contract markets. And yet, Acting Chair Pham has announced the agency’s intent to have these DCMs start trading spot crypto assets. How does the CFTC expect to engage in investor protection and prevent fraud and manipulation in markets where it has no legal authority? 

• If the CFTC’s rules prohibit event contracts on gaming or activity that is illegal under state law, and some states prohibit both betting on elections and betting on sports, how can the CFTC permit event contracts on elections and sporting events? 

• What steps would you take to protect the market from products such as perpetual futures that appear to be for speculation and lack a demonstrable hedging utility? 

The fact sheet is available online here.  

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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.