The Commodity Futures Trading Commission will continue to defend its authority to regulate prediction markets, according to Chairman Mike Selig. In an interview with CoinDesk, Selig stated that the agency's regulatory authority is exclusive, regardless of the subject matter of the predictions, as long as they are offered within a CFTC-regulated exchange. The CFTC is currently engaged in lawsuits against several states, including Arizona, Illinois, and Connecticut, to cement its authority over prediction markets. Selig emphasized that the agency's view is supported by a recent Third Circuit Court ruling and that the CFTC will pursue further litigation to clarify its oversight of prediction markets.
The chairman also noted that the agency is open to suggestions on the formal rulemaking process and is considering feedback on its interpretative guidance with the Securities and Exchange Commission.