Commodity Futures Trading Commission Chairman Mike Selig stated that the agency will continue to assert its 'exclusive regulatory authority' over prediction markets in court, emphasizing that the CFTC's jurisdiction applies to all validly offered products within a federally regulated exchange, regardless of the underlying event. The chairman's comments come as the CFTC engages in lawsuits against several states to establish its authority over prediction markets, which it believes are subject to federal regulation as commodity derivatives markets.
Selig noted that a recent Third Circuit Court ruling supports the CFTC's position, and the agency is committed to defending its territory in the face of state-level challenges. The CFTC is also undergoing a formal rulemaking process to clarify its oversight of prediction markets and is open to suggestions on how to evaluate and refine its approach. Additionally, the agency is reviewing comments on its joint interpretation with the Securities and Exchange Commission regarding the classification of digital assets and will consider feedback to ensure clarity and consistency in regulatory guidance.