Commodity Futures Trading Commission Chairman Mike Selig stated that the agency will continue to assert its exclusive regulatory authority over prediction markets in ongoing court cases. According to Selig, the agency's jurisdiction applies to any valid product offered within a CFTC-regulated exchange, regardless of the subject matter. The CFTC's lawsuits against several states, including Arizona, Illinois, and Connecticut, aim to establish the agency's authority over commodity derivatives markets.
A recent Third Circuit Court ruling has bolstered the CFTC's position, and the agency is committed to defending its territory in the prediction markets space. Under Selig's leadership, the CFTC has launched a significant litigation effort to establish that prediction markets provide derivatives products under the Commodity Exchange Act, rather than gambling services regulated by individual states.