The Commodity Futures Trading Commission will continue to assert its right to regulate prediction markets, according to Chairman Mike Selig. In an interview with CoinDesk, Selig stated that the agency's authority is clear, regardless of the subject matter of the predictions. The CFTC is currently engaged in lawsuits against several states, including Arizona, Illinois, and Connecticut, to establish its exclusive regulatory authority over commodity derivatives markets. A recent Third Circuit Court ruling has bolstered the agency's position.
Selig emphasized that the CFTC's role is to oversee derivatives products, not gambling services, and that states cannot override federal regulation. The agency is also reviewing comments on its interpretative guidance, published jointly with the Securities and Exchange Commission, to clarify the distinction between commodities and securities in the context of digital assets.