Commodity Futures Trading Commission (CFTC) Chairman Mike Selig emphasized that the agency will continue to assert its 'exclusive regulatory authority' over prediction markets in court. Selig stated, 'Regardless of the subject, whether sports, politics, or otherwise, if a product is validly offered on a CFTC-regulated exchange, it falls under our regulation.' The CFTC is currently engaged in lawsuits against several states, including Arizona, Illinois, and Connecticut, to establish its authority over commodity derivatives markets.
Selig noted that a recent Third Circuit Court ruling supporting the CFTC's oversight of prediction markets reinforces the agency's position. The CFTC is also involved 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.