Chairman of the Commodity Futures Trading Commission, Mike Selig, has reiterated the agency's commitment to defending its exclusive right to oversee prediction markets in court. Selig stated that the CFTC's regulatory authority 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 clarify its authority over commodity derivatives markets.
Selig pointed out that a recent Third Circuit Court ruling supports the CFTC's view. The agency is engaged in a significant litigation effort to establish that prediction markets provide derivatives products under the Commodity Exchange Act, rather than gambling services regulated by states. Selig emphasized that the CFTC decides whether a product is in the public interest and that the agency's exclusive regulatory authority applies, even if certain categories of underlying events require a public interest analysis.