The Commodity Futures Trading Commission will persist in defending its exclusive authority to regulate prediction markets, according to Chairman Mike Selig. In an interview with CoinDesk, Selig emphasized that the agency's regulatory oversight applies to all valid products offered within CFTC-regulated exchanges, regardless of the subject matter. The CFTC is currently engaged in lawsuits against several states to assert its authority over prediction markets, which it believes fall under its jurisdiction as commodity derivatives markets. Selig's comments come after a recent court ruling supported the CFTC's stance, bolstering its argument that states cannot override federal regulation in this area.
The agency is also in the process of clarifying its oversight of prediction markets through formal rulemaking and is open to suggestions on this process.