Commodity Futures Trading Commission Chairman Mike Selig emphasized that the agency will persist in defending its sole regulatory authority over prediction markets in court. According to Selig, the CFTC's jurisdiction applies to any valid product offered within a CFTC-regulated exchange, regardless of the subject matter. The agency's lawsuits against several states aim to establish its authority over commodity derivatives markets. A recent court ruling has bolstered the CFTC's stance, and the agency is currently engaged in a significant litigation effort to reinforce its position.
Selig noted that the CFTC's authority is clearly defined in the Commodity Exchange Act, and the agency will continue to regulate transactions on federally regulated markets, superseding state-level gambling laws.