According to Commodity Futures Trading Commission Chairman Mike Selig, the agency will continue to assert its exclusive right to regulate prediction markets. Selig emphasized that the CFTC's authority applies to any valid product offered within a CFTC-regulated exchange, regardless of the underlying event. The chairman's comments come as the CFTC engages in lawsuits against several states to establish its regulatory authority over prediction markets. A recent Third Circuit Court ruling has bolstered the agency's position, and Selig argues that the Commodity Exchange Act clearly grants the CFTC regulatory authority over commodity derivatives markets.
The CFTC is also in the process of clarifying its oversight of prediction markets through formal rulemaking, and Selig welcomes suggestions on the matter. Additionally, the agency has published interpretative guidance with the Securities and Exchange Commission to provide clarity on the classification of digital assets and tokens.