According to Commodity Futures Trading Commission Chairman Mike Selig, the agency will persist in defending its exclusive regulatory authority over prediction markets in court. Selig emphasized that the CFTC's jurisdiction applies to all valid products offered within a CFTC-regulated exchange, regardless of the subject matter.
The agency's lawsuits against Arizona, Illinois, and Connecticut aim to establish its authority over commodity derivatives markets. A recent Third Circuit Court ruling has bolstered the CFTC's position, and the agency is engaged in a significant litigation effort to assert its regulatory oversight. Selig noted that the CFTC's authority is clear when it comes to swaps offered on federally regulated markets, and states cannot supersede federal regulation with their own gambling laws.
The agency is also involved in a consolidated case before the Ninth Circuit Court of Appeals and has filed an amicus brief. The CFTC is currently undergoing a formal rulemaking process to clarify its oversight of prediction markets and is open to suggestions on the process.