The Commodity Futures Trading Commission will persist in defending its exclusive right to regulate prediction markets, according to Chairman Mike Selig. In an interview with CoinDesk, Selig emphasized that the agency's regulatory authority applies to all valid products offered within CFTC-regulated exchanges, regardless of the subject matter.
The CFTC's lawsuits against several states are aimed at cementing this authority, with Selig stating that the agency's view is supported by a recent Third Circuit Court ruling. The regulator is currently engaged in a major litigation effort to establish that prediction markets provide derivatives products under the Commodity Exchange Act, rather than gambling services regulated by states. Selig noted that the CFTC has the authority to decide whether a product is in the public interest and that the agency's lawsuits are focused on this aspect.
The CFTC is also undergoing a formal rulemaking process to clarify its oversight of prediction markets and is open to suggestions on this process.