Commodity Futures Trading Commission Chairman Mike Selig emphasized that the agency will persist in defending its exclusive regulatory authority over prediction markets in court, stating that any valid product offered within a CFTC-regulated exchange falls under the agency's jurisdiction. Selig's remarks come as the CFTC engages in lawsuits against several states, including Arizona, Illinois, and Connecticut, to establish its authority over commodity derivatives markets. The agency's position is that the Commodity Exchange Act clearly grants it regulatory oversight of swaps on federally regulated Designated Contract Markets, regardless of the underlying events.
Selig noted that a recent Third Circuit Court ruling supports the CFTC's stance, and the agency is committed to clarifying its oversight of prediction markets through the formal rulemaking process.