Selig is considering advancing the implementation of protections for software developers and reaffirming the CFTC's exclusive jurisdiction over prediction markets.

The U.S. Commodity Futures Trading Commission (CFTC) Chairman Michael Selig is contemplating formal rulemaking to solidify the agency's stance on protecting non-custodial software developers.

Since taking office as CFTC Chairman over a year ago, Selig has been working to create a more crypto-friendly regulatory environment, especially in safeguarding non-custodial software developers.

In March of this year, the CFTC issued a "no-action letter" stating that crypto wallet provider Phantom can offer self-custody wallet software without registering as a broker, provided certain conditions are met.

On Tuesday, at the Miami Consensus conference, Selig stated that the CFTC plans to formalize this stance into rules, quickly providing clear guidance for relevant companies through rulemaking to assist them in developing and selling their software in the U.S.

Not only is the CFTC promoting developer protections, but the SEC is also clarifying its regulatory stance toward software developers. Last month, the SEC's Division of Trading and Markets issued a staff statement noting that DeFi wallets and similar interfaces are generally not considered brokers. However, this guidance is only a transitional measure and not a final policy decision.

In addition, Selig reaffirmed the CFTC's exclusive jurisdiction over the prediction market sector, stating that any state actions infringing on the CFTC's authority will be met with legal action.

Currently, several states have banned prediction markets on the grounds of violating local betting laws, especially in the sports betting category, and the CFTC has filed lawsuits against states including Wisconsin and Illinois. Further legal actions are expected to continue in the future.

#CFTC #Policy protections