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The US will punish insider trading and fraud, the derivatives regulator told Congress

Washington's top regulator of derivatives is expected to assure lawmakers on Thursday that the United States will punish fraudulent activity as concerns?mount on Capitol Hill about oil, stock, and prediction market participants trading illicitly based on insider information from a?White House. According to prepared remarks viewed by, Michael Selig's first congressional testimony comes a day following media reports that the U.S. Commodity Futures Trading Commission is investigating a number of oil futures transactions executed just before President Donald Trump made major policy changes.

These remarks also serve as a "nod" to the sudden attention that the relatively low-profile agency, which has only one member, Selig?rather than the usual five, now finds itself in.

Selig stated in a statement that anyone engaging in fraud, manipulation, or insider trading on any of our markets will be found and will face the full 'force' of the law. Selig is due to appear before the House Agriculture Committee (which oversees CFTC) at 10 a.m. EST. (1400 GMT). At least four times, legal experts stated that it appeared as if investors were aware of the major Trump decisions regarding tariffs, Venezuela or Iran. These decisions led to significant changes in the market. These trades are largely within the CFTC?jurisdiction. David Miller, the new enforcement director of the CFTC, stated last month that the agency was focusing on policing market manipulation and insider trading.

Selig will also be asked by members of the House Agriculture Committee questions about his agency’s?assertion that it has sole jurisdiction? over prediction markets. Critics have compared this to state-regulated gaming, and the work the Securities and Exchange Commission is doing with its agencies in adopting a 'new era of digital assets,' according to the agencies.

The CFTC was created in 1974 and has a budget of less that $400 million. It is responsible for policing a complex and expanding?set? of futures,'swaps' and event contracts.

Selig, the lone member of this commission, is normally composed of five members. Two are from the minor party.

(source: Reuters)