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        "rendered": "CFTC Chair Mike Selig Faces Bipartisan Pushback on Prediction Markets, Hyperliquid Perps"
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        "rendered": "<div>\n<div>\n<h4 color=\"#333\">In brief<\/h4>\n<ul>\n<li>Mike Selig faced bipartisan criticism in Congress over prediction markets and crypto platforms like Hyperliquid.<\/li>\n<li>Lawmakers raised concerns about insider trading, war-related betting markets, and whether these products resemble gambling.<\/li>\n<li>Both parties warned unregulated platforms could pose risks to consumers and the broader economy.<\/li>\n<\/ul>\n<\/div>\n<p><span>CFTC Chairman Mike Selig received pushback from both sides of the aisle Thursday, with lawmakers in both parties grilling the regulator about controversial new financial products under his purview, including prediction markets and Hyperliquid, the decentralized perpetual futures exchange.<\/span><\/p>\n<p><span>During a hearing today before the House Agriculture Committee, which oversees the CFTC, Democrats pressed Selig on a growing number of suspicious futures trades\u2014timed just prior to major announcements from President Donald Trump, or actions of his administration\u2014that have netted unnamed investors hundreds of millions of dollars in profit.<\/span><\/p>\n<p><span>Selig insisted his agency is intent on rooting out insider trading, but grew defensive when lawmakers made explicit reference to potential wrongdoing by those close to the president, including his family. The president\u2019s son, Donald Trump Jr., is an advisor to America\u2019s two top prediction market platforms, Polymarket and Kalshi.<\/span><\/p>\n<p><span>\u201cI\u2019m not going to play speculation games with you,\u201d Selig retorted, when asked by Rep. Jim McGovern (D-MA) whether Trump Jr. or other Trump family members would have had prior knowledge of a March 23 social media post by the president, regarding new negotiations with Iran over the ongoing war in the Middle East.<\/span><\/p>\n<p><span>Only 15 minutes before the post, lucky traders <\/span><a href=\"https:\/\/www.reuters.com\/business\/energy\/traders-bet-500-million-oil-price-just-before-trumps-post-delay-iran-attack-2026-03-24\/\" target=\"_blank\"><span>wagered<\/span><\/a><span> some $500 million dollars on the price of oil, which immediately plummeted after the release of Trump\u2019s statement.<\/span><\/p>\n<p><span>War was a salient topic at today\u2019s hearing, with other lawmakers scrutinizing controversial prediction market wagers related to <\/span><a href=\"https:\/\/decrypt.co\/360293\/kalshi-sued-refusing-pay-out-prediction-market-iran-leader-death\" target=\"_blank\"><span>war and death<\/span><\/a><span>.<\/span><\/p>\n<p><span>\u201cI don\u2019t believe this is market innovation,\u201d Rep. Jim Costa (D-CA) scolded Selig, referencing such markets. \u201cThat is profiting from tragedy.\u201d<\/span><\/p>\n<p><span>When Costa asked the CFTC chair whether prediction markets related to war and the death of political leaders were ever intended to be under the agency\u2019s purview, Selig replied that he is currently working on a proposed rulemaking about prediction markets that the public will be able to weigh in on.<\/span><\/p>\n<p><span>But he also appeared to defend the legality and necessity of such death-related wagers.<\/span><\/p>\n<p><span>\u201cOut statute has a very broad definition of the term commodity and a very broad definition of the term swap,\u201d Selig said.<\/span><\/p>\n<p><span>During another flashy exchange, Selig appeared unable to tell the difference between an unlabeled sports bet and an unlabeled event contract pertaining to the same baseball game. Selig has aggressively <\/span><a href=\"https:\/\/decrypt.co\/363171\/trump-admin-backs-prediction-markets-lawsuits-illinois-arizona-connecticut\" target=\"_blank\"><span>claimed<\/span><\/a><span> sports-related event contracts are different from gambling and should be under the CFTC\u2019s purview, even as states across the country have sued on the basis they are one and the same.\u00a0<\/span><\/p>\n<p><span>\u201cIt\u2019s clear to me you can\u2019t tell [the difference], because the average consumer also can\u2019t tell,\u201d Rep. Gabe Vasquez (D-NM) said.<\/span><\/p>\n<p><span>Pushback during today\u2019s hearing did not come only from Democrats. Republican lawmakers also pressed Selig on the emergence of novel financial products they fear could damage the U.S. economy.<\/span><\/p>\n<p><span>Rep. Austin Scott (R-GA), for instance, pressed Selig on the emergence of <\/span><a href=\"https:\/\/decrypt.co\/resources\/what-hyperliquid-decentralized-exchange-blockchain\" target=\"_blank\"><span>Hyperliquid<\/span><\/a><span>, a popular decentralized exchange for perpetual futures\u2014derivatives contracts with no expiration date, which allow traders to place indefinite wagers on commodity prices. Hyperliquid currently operates offshore, technically outside the CFTC\u2019s purview.<\/span><\/p>\n<p><span>Scott urged the CFTC to find a way to ensure Hyperliquid has to meet the same standards as regulated American futures exchanges\u2014because the crypto platform\u2019s tremendous popularity on key trades such as <\/span><a href=\"https:\/\/decrypt.co\/363660\/hyperliquid-traders-face-widespread-liquidations-oil-prices-collapse\" target=\"_blank\"><span>oil contracts<\/span><\/a><span>, he said, could still have a dramatic impact on the domestic economy.<\/span><\/p>\n<p><span>\u201cIf the volume that I\u2019m seeing is correct,\u201d he said, \u201cit has the potential to be detrimental to the United States consumer.\u201d<\/span><\/p>\n<p><span>Selig has in recent weeks said he <\/span><a href=\"https:\/\/decrypt.co\/359916\/morning-minute-cftc-chair-says-u-s-perpetual-futures-are-coming\" target=\"_blank\"><span>plans<\/span><\/a><span> to dramatically expand the availability of perpetual futures trading to everyday traders, despite the risks posed by such financial products.<\/span><\/p>\n<div>\n<h3>Daily Debrief Newsletter<\/h3>\n<p>Start every day with the top news stories right now, plus original features, a podcast, videos and more.<\/p>\n<\/div>\n<\/div>",
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        "rendered": "<p>In brief Mike Selig faced bipartisan criticism in Congress over prediction markets and crypto platforms like Hyperliquid. Lawmakers raised concerns [&hellip;]<\/p>",
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