According to Commodity Futures Trading Commission Chairman Mike Selig, the agency will persist in defending its exclusive right to regulate prediction markets in court. Selig emphasized that the type of event being predicted is irrelevant, stating, 'If it's a validly offered product within a CFTC-regulated exchange, then we regulate that.' The CFTC is currently engaged in lawsuits against several states, including Arizona, Illinois, and Connecticut, to establish its authority over commodity derivatives markets. A recent Third Circuit Court ruling has bolstered the agency's position, with Selig asserting that the statute clearly indicates federal regulation applies when a swap is offered on a federally regulated Designated Contract Market. The CFTC is also involved in a formal rulemaking process to clarify its oversight of prediction markets and has published interpretative guidance with the Securities and Exchange Commission to provide clarity on the distinction between commodities and securities in the context of digital assets.