The Commodity Futures Trading Commission will persist in defending its right to regulate prediction markets, according to Chairman Mike Selig. In an interview with CoinDesk, Selig asserted that the agency's authority is not limited by the subject of the prediction, whether it be sports, politics, or other areas, as long as the product is offered within a CFTC-regulated exchange. The CFTC is currently engaged in lawsuits against several states, including Arizona, Illinois, and Connecticut, to establish its regulatory authority over prediction markets. Selig emphasized that the agency's view is supported by a recent Third Circuit Court ruling and is grounded in the Commodity Exchange Act, which grants the CFTC exclusive regulatory authority over commodity derivatives markets.
The chairman also noted that the CFTC is in the process of clarifying its oversight of prediction markets through formal rulemaking and is open to suggestions on the matter.