CFTC Nominee Promises to Accept Court Orders on Predictions

The new CFTC nominee is taking a far softer tone on prediction markets than his predecessor.

New White House nominee Michael Selig answered questions in front of the Senate Agriculture, Nutrition, and Forestry Committee this week. While he was elusive on his views on the legality of sports prediction markets, he also assured members he would follow whatever the courts decide. This was a significant departure from the last nominee, Brian Quintenz, who was withdrawn from consideration over the summer. 

While several Senators had unanswered questions, Selig’s nomination is expected to succeed.

Selig Cites Experience Practicing Law

While some lawmakers were frustrated by Selig’s deflecting questions, the nominee held firm that he would allow the US court system to decide on sports prediction markets. He cited his time spent practicing law for his response, stressing the importance of the legal process for such a complex issue.

“As someone who spent many years practicing law at law firms as well as studying the law in law school, these are complex issues as to the interpretation of what it means to constitute gaming,” Selig said during the hearing. “And, of course, I have the utmost respect for our judges working on these issues in our court system, and I intend to always adhere to the law and follow what judicial decisions tell me to follow.”

Lawmakers Push for Promises on Restrictions

The reason Selig was forced to repeat his opinion on sports prediction markets was a wide array of questions on restrictions. Some Senators argue for Selig to commit to banning the use of these platforms from tribal lands, despite a California court recently rejecting that argument.

Senators from states with legal sports betting markets pressed Selig on his views on states' rights to ban these platforms. Selig again stated his belief that this should be decided in court and that he would respect any rulings.

Will Selig Deliver on His Promise?

Selig stood firm over his commitment to follow court rulings concerning sports prediction markets. Some believe he will simply follow President Trump's orders, regardless of what the courts say. Given the President’s history of firing staff who don’t obey orders, Selig’s power may be severely limited.

However, when party politics is removed from the debate, Selig’s stance seems the most reasonable. If the CFTC takes any action before the courts deliver a ruling, it could create chaos and simply lead to more legal fights. It would also put the regulator in the crosshairs of roughly half of the country’s lawmakers.

While Selig’s ties to the crypto industry have opponents in the industry concerned, his willingness to step back from the debate has them more comfortable with him than with his predecessor.