The Commodity Futures Trading Commission will continue to assert its regulatory authority over prediction markets, Chairman Mike Selig stated. He emphasized that the agency's oversight applies to any valid product offered within a CFTC-regulated exchange, regardless of the subject matter. Selig's comments come as the CFTC engages in lawsuits against several states to solidify its authority in this area.
The agency's position is that states cannot override federal regulation when it comes to commodity derivatives markets. A recent court ruling has bolstered the CFTC's stance, and the agency is now pursuing further litigation to clarify its oversight of prediction markets.
Selig noted that the CFTC is open to feedback as it undergoes the formal rulemaking process to define its role in regulating these markets.