The Commodity Futures Trading Commission will continue to defend its exclusive right to regulate prediction markets, according to Chairman Mike Selig. In an interview with CoinDesk, Selig stated that the agency's regulatory authority applies to all valid products offered within a CFTC-regulated exchange, regardless of the subject matter. The CFTC is currently engaged in lawsuits against several states, including Arizona, Illinois, and Connecticut, to establish its authority over commodity derivatives markets.
Selig emphasized that the agency's view is supported by a recent Third Circuit Court ruling and that states do not have the power to override federal regulation with their own gambling laws. The CFTC is also involved in a formal rulemaking process to clarify its oversight of prediction markets and is open to suggestions on how to evaluate this process.