The Commodity Futures Trading Commission (CFTC) will persist in defending its exclusive regulatory authority over prediction markets, 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 several states, including Arizona, Illinois, and Connecticut, aim to establish the agency's authority over commodity derivatives markets. Selig's comments come after a recent Third Circuit Court ruling that supports the CFTC's oversight of prediction markets.
The agency is engaged in a significant litigation effort to reinforce the argument that prediction markets provide derivatives products under the Commodity Exchange Act, rather than gambling services regulated by states. Selig noted that the CFTC's regulatory authority is clear and that states cannot override federal oversight with their own gambling laws. The agency is also involved in a formal rulemaking process to clarify its oversight of prediction markets and is considering feedback on its interpretative guidance.