According to Commodity Futures Trading Commission Chairman Mike Selig, the agency will persist in defending its right to regulate prediction markets. Selig stated, 'Regardless of the subject, whether sports or politics, if a product is validly offered on a CFTC-regulated exchange, it falls under our regulatory purview.' The CFTC is currently engaged in lawsuits against several states to solidify its authority over commodity derivatives markets. Selig pointed out that a recent Third Circuit Court ruling supports the CFTC's position.
He emphasized that the agency's primary objective is to ensure that states do not overstep their bounds by imposing gambling laws on transactions that are subject to federal regulation. The CFTC is also in the process of clarifying its oversight of prediction markets through formal rulemaking.
Additionally, Selig mentioned that the agency is open to feedback on its recently published interpretative guidance with the Securities and Exchange Commission.