The Commodity Futures Trading Commission will continue to assert its 'exclusive regulatory authority' over prediction markets in court, according to Chairman Mike Selig. In an interview with CoinDesk, Selig emphasized that the agency's jurisdiction applies to all valid products offered within CFTC-regulated exchanges, regardless of the subject matter.
The CFTC's lawsuits against Arizona, Illinois, and Connecticut aim to establish its authority over commodity derivatives markets. Selig noted that a recent Third Circuit Court ruling supports the agency's position. The CFTC is engaged in a significant litigation effort to argue that prediction markets provide derivatives products under the Commodity Exchange Act, rather than gambling services regulated by states.
Selig clarified that the agency's view is that the statute clearly states that transactions on federally regulated Designated Contract Markets are subject to federal regulation, and states cannot override this oversight with their own gambling laws.