The Commodity Futures Trading Commission will persist in defending its exclusive right to regulate prediction markets, according to Chairman Mike Selig. In an interview with CoinDesk, Selig stated that the agency's regulatory authority is clear, regardless of the subject of the prediction, whether it be sports, politics, or other events, as long as it is a valid product offered within a CFTC-regulated exchange. The CFTC is currently engaged in lawsuits against several states, including Arizona, Illinois, and Connecticut, to establish its authority over prediction markets. Selig's comments come after a recent Third Circuit Court ruling that supports the CFTC's oversight of these markets.
The agency is also in the process of formal rulemaking to clarify its regulatory framework for prediction markets.