According to Commodity Futures Trading Commission Chairman Mike Selig, the agency will persist in defending its exclusive regulatory authority over prediction markets in court, emphasizing that any product offered within a CFTC-regulated exchange falls under federal oversight, regardless of the subject matter. Selig's comments come as the CFTC engages in lawsuits against several states to establish its control over commodity derivatives markets. A recent Third Circuit Court ruling has bolstered the agency's position, supporting its claim that prediction markets are subject to federal regulation rather than state gambling laws.
The CFTC is also involved in a formal rulemaking process to clarify its supervision of prediction markets and has collaborated with the Securities and Exchange Commission to issue interpretative guidance on digital assets.