The Commodity Futures Trading Commission (CFTC) will continue to assert its 'exclusive regulatory authority' over prediction markets in court, according to Chairman Mike Selig. In an interview with CoinDesk, Selig emphasized that the agency's jurisdiction applies to any valid product offered within a CFTC-regulated exchange, 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's comments come after a recent Third Circuit Court ruling that supported the CFTC's oversight of prediction markets. The agency is also undergoing a formal rulemaking process to clarify its regulatory framework for prediction markets.
Additionally, the CFTC has published interpretative guidance with the Securities and Exchange Commission (SEC) to provide clarity on the distinction between commodities and securities in the context of digital assets.