U.S. Securities and Exchange Commission Chair Paul Atkins came to the defense of Commodity Futures Trading Commission Michael Selig as the derivatives agency digs in its heels on regulating prediction markets, despite concerns that it lacks the capacity to oversee the fast-growing sector.

On Tuesday morning, during an interview with CNBC, Atkins was asked whether the CFTC has enough money to oversee prediction markets.

For the fiscal year 2027, the CFTC has asked Congress for a budget of $410 million, an increase of about 12.3% from the previous year. In comparison, the SEC is asking for $1.908 billion, a decrease from fiscal year 2026. In terms of staff, the SEC is much larger with over 4,000 employees, compared to about 550 employees at the CFTC.

Selig is "capable," Atkins said.

"He's doing a great job at the CFTC," Atkins said. "He's trying to make sense of the various innovative products that are being traded around the world."

The CFTC has been pushing ahead in overseeing prediction markets, which allow people to bet on which team will win the World Cup or when the U.S. will "confirm that aliens exist." Firms like Polymarket and Kalshi garnered popularity, particularly following the 2024 elections, and are each now worth billions of dollars.

Over the past year, states and their regulators have come under the federal agency's crosshairs as Selig seeks to maintain jurisdiction over prediction markets for sports betting. The CFTC has since sued several states in an effort to get "exclusive jurisdiction" as states have pushed back to maintain their authority.

Then last week, the CFTC debuted a sweeping rule proposal that would generally allow sports betting on prediction markets, while setting limits on bets on terrorism and assassinations.

Selig is also the only commissioner at the agency, leaving four empty spots. The proposed predictions market rule included a line —  "Chairman Selig voted in the affirmative. No Commissioner voted in the negative."

The CFTC is also positioned to regulate the cryptocurrency industry. Lawmakers have been working to pass a sweeping bill to regulate the sector for the first time at the federal level, which would give the agency broad authority over those assets.

During a congressional hearing in April, Republican House Agriculture Chair Glenn "GT" Thompson emphasized how much was on the CFTC's plate.

"I just want to make sure that if you find yourself in the future in a situation where the need for additional qualified staff emerges, that you will communicate that back to the committee," Thompson told Selig.

Last week, in a post on X, Selig said the CFTC is hiring and is "recruiting the best and brightest," while also using artificial intelligence to seek insider trading, among other areas.