The Commodity Futures Trading Commission will continue to assert its exclusive authority to regulate prediction markets, according to Chairman Mike Selig. In an interview with CoinDesk, Selig emphasized that the agency's regulatory oversight applies to all valid products offered within CFTC-regulated exchanges, regardless of the underlying event.
The CFTC is currently engaged in lawsuits against several states, including Arizona, Illinois, and Connecticut, to establish its authority over commodity derivatives markets. Selig cited a recent Third Circuit Court ruling in support of the CFTC's position, stating that the agency has the clear authority to oversee prediction markets. The CFTC is also undertaking a formal rulemaking process to clarify its oversight of prediction markets and is reviewing comments on its interpretative guidance with the Securities and Exchange Commission.