The Commodity Futures Trading Commission will persist in defending its sole regulatory authority over prediction markets, according to Chairman Mike Selig. In an interview with CoinDesk, Selig emphasized that the agency's jurisdiction applies to any valid product offered within a CFTC-regulated exchange, regardless of the subject matter.
The CFTC is currently engaged in litigation against several states, including Arizona, Illinois, and Connecticut, to establish its authority over commodity derivatives markets. Selig's remarks come after a recent Third Circuit Court ruling that reinforced the CFTC's oversight of prediction markets. The agency is also undertaking a formal rulemaking process to clarify its regulatory framework for prediction markets, and is open to feedback and suggestions from stakeholders.