CFTC Chairman's words are quite straightforward: traditional banks must embrace on-chain transformation or be left behind. New regulations for prediction markets and perpetual contracts are coming; if the CLARITY Act is implemented, innovation in the U.S. can finally breathe, otherwise liquidity will all flow overseas.

According to Fox Business, U.S. Commodity Futures Trading Commission (CFTC) Chairman Michael Selig issued a warning to traditional large banks in an interview, clearly stating that traditional financial institutions cannot resist the market transformation based on blockchain technology. Selig revealed that the CFTC is currently working on new regulatory rules for Prediction Markets and that it is also actively pushing for the implementation of the CLARITY Act, aiming to provide a clear federal regulatory framework for the crypto market to promote domestic innovation and prevent liquidity from flowing to overseas offshore markets.