In a statement to CoinDesk, Commodity Futures Trading Commission Chairman Mike Selig emphasized the agency's commitment to defending its 'exclusive regulatory authority' over prediction markets in court. Selig clarified that the CFTC's jurisdiction applies to any validly offered product within a CFTC-regulated exchange, regardless of the underlying event. The agency's lawsuits against Arizona, Illinois, and Connecticut aim to establish its authority over commodity derivatives markets.
A recent Third Circuit Court ruling supporting the CFTC's oversight of prediction markets has bolstered the agency's position. Under Selig's leadership, the CFTC has launched a significant litigation effort to argue that prediction markets provide derivatives products under the Commodity Exchange Act, rather than gambling services regulated by states.