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SEC Chair Paul Atkins publicly defended CFTC counterpart Michael Selig in a Tuesday CNBC interview, calling him "capable" and saying "he's doing a great job at the CFTC" as the smaller derivatives regulator pushes ahead on prediction-market oversight despite questions over its funding and staffing.
The CFTC is requesting $410 million for fiscal year 2027, up roughly 12.3% year-on-year, against a headcount of about 550 employees. The SEC, by contrast, is asking for $1.908 billion and employs more than 4,000. Atkins' endorsement comes at a delicate moment: Selig currently sits as the agency's only sitting commissioner, with four commissioner seats vacant, and a prediction-market rule proposal unveiled last week carried the line "Chairman Selig voted in the affirmative. No Commissioner voted in the negative."
Why it matters
The CFTC's prediction-market push puts it in direct friction with state regulators. The agency has sued several states to assert "exclusive jurisdiction" over sports-event contracts traded on platforms like Polymarket and Kalshi, each now worth billions of dollars. Its proposed rule would generally allow sports betting on prediction markets while setting limits on contracts tied to terrorism and assassinations. Atkins' backing signals the White House-aligned SEC is comfortable letting the CFTC own this file rather than carving it up between the two agencies.
Republican House Agriculture Chair Glenn "GT" Thompson pressed Selig on capacity in an April hearing, urging him to flag staffing needs early. Selig responded on X last week that the agency is "recruiting the best and brightest" and leaning on AI for surveillance work including insider-trading detection.
Market impact
The jurisdictional fight is the read-through for prediction-market and crypto desks. A CFTC that prevails over the states locks in federal preemption for event contracts — a tailwind for Polymarket and Kalshi's federal-legal posture, and a precedent for how the agency might wield the broader crypto authority lawmakers are drafting into the pending market-structure bill.
Frequently asked questions
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Why did SEC Chair Atkins defend CFTC Chair Selig?
In a Tuesday CNBC interview, Atkins called Selig "capable" and said "he's doing a great job at the CFTC," as the derivatives regulator pushes ahead on prediction-market oversight despite funding and staffing questions.
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How big is the CFTC compared to the SEC?
The CFTC is requesting $410 million for fiscal 2027, up about 12.3% year-on-year, and has roughly 550 employees. The SEC is asking for $1.908 billion and employs more than 4,000.
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What did the CFTC's prediction-market rule proposal do?
Unveiled last week, the rule would generally allow sports betting on prediction markets while restricting contracts tied to terrorism and assassinations. It was approved by Selig alone, with four commissioner seats currently vacant.
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Why is the CFTC suing states over prediction markets?
The agency is seeking to assert "exclusive jurisdiction" over sports-event contracts traded on platforms like Polymarket and Kalshi, pre-empting state regulators that have pushed back to preserve their own authority over sports betting.
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How does this connect to the crypto market-structure bill?
Lawmakers are drafting legislation that would give the CFTC broad authority over digital assets, adding a crypto mandate on top of prediction markets — a workload expansion that has Republican House Agriculture Chair Glenn "GT" Thompson publicly pressing Selig on staffing capacity.
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