US CFTC Chairman: Unregulated prediction markets could be the next FTX

U.S. Commodity Futures Trading Commission (CFTC) Chairman Michael Selick has strongly advocated for bringing prediction market platforms under a formal regulatory framework. According to Decrypt, he warned that if platforms such as Kalshi and Polymarket are pushed into unregulated offshore jurisdictions without clear guidelines, a catastrophic collapse similar to the FTX incident could recur. Addressing recent insider trading allegations and individual lawsuits from state governments, Selick stressed the need for clear policy-based regulation rather than litigation. He also foreshadowed the establishment of a unified federal regulatory framework for prediction markets linked to AI and crypto.