According to Commodity Futures Trading Commission Chairman Mike Selig, the agency will continue to defend its exclusive right to regulate prediction markets in court. Selig emphasized that regardless of the subject, whether sports, politics, or otherwise, if a product is offered within a CFTC-regulated exchange, it falls under the agency's jurisdiction.
The CFTC is currently engaged in lawsuits against several states, including Arizona, Illinois, and Connecticut, to establish its authority over prediction markets. Selig noted that a recent Third Circuit Court ruling supporting the CFTC's oversight of prediction markets reinforces the agency's position.
The agency is also undergoing a formal rulemaking process to clarify its supervision of prediction markets and is open to suggestions on the process.