Today in crypto, Commodity Futures Trading Commission Chair Michael Selig put out prediction markets rulemaking for public comment, investors allege US banking giant JPMorgan helped facilitate fund flows in a $328 million crypto Ponzi scheme, and the US Securities and Exchange Commission (SEC) and CFTC signed a memo to regulate crypto and other emerging markets in harmony.
CFTC chair opens prediction markets rulemaking to public comment
Michael Selig, chair of the US Commodity Futures Trading Commission (CFTC), has proposed a rule that could amend or issue new regulations over event contracts on prediction markets platforms like Kalshi and Polymarket.
In a Thursday notice, the CFTC issued a staff advisory classifying event contracts on prediction markets as a “financial asset class.” The regulator also submitted an Advanced Notice of Proposed Rulemaking to be published in the Federal Register, asking for public comment on how the Commodity Exchange Act (CEA) would apply to prediction markets.
“Prediction markets are one of the most exciting innovations in financial markets,” said Selig in a Thursday X post. “Yet for too long, the CFTC has failed to provide guidance for these markets being used by millions of Americans. This ends today.”
JPMorgan sued over alleged role in $328 million crypto Ponzi
JPMorgan is facing a lawsuit for allegedly enabling a $328 million crypto Ponzi scheme run by now-defunct Goliath Ventures.
Investors on Tuesday filed a proposed class action in the US District Court for the Northern District of California, accusing JPMorgan of ignoring suspicious transactions and allowing Goliath to use its infrastructure to collect investor funds.
The lawsuit notes that despite JPMorgan CEO Jamie Dimon’s repeated criticism of Bitcoin (BTC), the bank allegedly failed to prevent crypto scammers from carrying out fraudulent wire transactions.
“Chase, by virtue of its Know Your Customer actually knew that Goliath was acting as a ‘private equity’ cryptocurrency pool operator investing money for investors, without being licensed at all to sell these investments,” the complaint states.
The US Attorney’s Office for the Middle District of Florida announced the arrest of Goliath CEO Christopher Delgado on Feb. 24. He faces a maximum penalty of 30 years in federal prison if convicted on all counts.
Prosecutors said Goliath Ventures, formerly known as Gen-Z Venture Firm, operated the scheme from January 2023 through January 2026.
The lawsuit claims JPMorgan was the sole banking institution for Goliath from January 2023 to May or June 2025. “Goliath obtained at least $328 million from what are believed to be over 2,000 investors,” the complaint notes.
SEC, CFTC agree to regulate crypto, other markets in harmony
Two of the US’s most influential financial regulators have agreed to better coordinate oversight of the financial markets, seeking to put an end to decades of “regulatory turf wars” between them.
According to the memorandum of understanding written on Wednesday, the US Securities and Exchange Commission and US Commodity Futures Trading Commission said it has become a “pivotal time” to regulate in harmony as new technologies, such as crypto, make it more challenging to monitor the markets.
In a separate statement, SEC chair Paul Atkins said the memo is the latest step towards repairing the relationship between the agencies:
“For decades, regulatory turf wars, duplicative agency registrations, and different sets of regulations between the SEC and CFTC have stifled innovation and pushed market participants to other jurisdictions.”
The agencies also noted in the memo that they strive to provide a “fit-for-purpose regulatory framework for crypto assets.”
