In an interview with CoinDesk, Commodity Futures Trading Commission (CFTC) Chair Mike Selig reiterated his agency’s stance of maintaining ‘exclusive regulatory authority’ over prediction markets. He emphasized that the CFTC regulates all validly offered products on a federally regulated exchange, irrespective of whether they pertain to sports, politics, or other areas.
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During the Digital Assets and Emerging Tech Policy Summit at Vanderbilt University in Nashville, Tenn., Selig outlined that the CFTC is defending its regulatory domain through lawsuits against Arizona, Illinois, and Connecticut. These cases underscore the agency’s claim to sole oversight of commodity derivatives markets.
Selig mentioned a recent ruling by the Third Circuit Court, which supports the CFTC’s jurisdiction over prediction markets. The Commission has been actively litigating to affirm that these markets offer derivatives products under the Commodity Exchange Act, not gambling services subject to state regulation.
“The statute clearly states that any swap offered on a federally regulated Designated Contract Market is under federal purview,” Selig explained. “This applies regardless of the event type; states cannot override federal oversight in this domain.”
Although Nevada and Massachusetts have secured preliminary injunctions against prediction market providers, Selig hinted that additional actions may follow, noting the CFTC’s recent amicus brief filed with the Ninth Circuit Court of Appeals—encompassing Nevada.
Under the Dodd-Frank Act, the CFTC can regulate swaps and has the discretion to block those deemed contrary to public interest. This includes areas such as war or terrorism. Selig asserted that these determinations fall within the agency’s exclusive regulatory authority.
The CFTC is also refining its rules for prediction market oversight through formal rulemaking, welcoming suggestions on this process. Selig noted that feedback might lead to revisions in their final interpretation released with the SEC last month.
This guidance aims to clarify the classification of digital assets and securities, delineating clear boundaries between regulatory bodies. Both agencies are striving for alignment to avoid jurisdictional conflicts.
Selig encouraged dialogue on his upcoming topics at CoinDesk’s Consensus Miami conference via email or on Bluesky. Join related discussions on [Telegram](#).