Commodity Futures Trading Commission Chairman Mike Selig emphasized that the agency will continue to assert its 'exclusive regulatory authority' over prediction markets in court, stating that any valid product offered within a CFTC-regulated exchange falls under its jurisdiction. Selig made these comments on the sidelines of the Digital Assets and Emerging Tech Policy Summit, where he clarified that the agency's lawsuits against several states are intended to establish its authority over commodity derivatives markets.
The CFTC Chairman pointed to a recent Third Circuit Court ruling as bolstering the agency's position, and noted that the statute clearly indicates that transactions on federally regulated markets are subject to federal regulation, regardless of the underlying event. Selig also highlighted the agency's ongoing litigation efforts to establish that prediction markets are providing derivatives products under the Commodity Exchange Act, rather than gambling services regulated by states.