CFTC Chair Says Agency Has Sole Authority Over Prediction Markets

CFTC Chair Mike Selig said the agency will continue to assert exclusive federal oversight of prediction markets and use litigation to clarify the regulatory status of commodity derivatives markets. Speaking at the Digital Assets Summit at Vanderbilt University, Selig said that prediction products tied to sports, politics or other subjects fall under the CFTC's jurisdiction when they are lawfully listed on CFTC-regulated exchanges, and states cannot replace federal supervision by applying gambling laws. The CFTC has recently sued Arizona, Illinois and Connecticut as part of its effort to reinforce that authority. Selig added that the agency is drafting Dodd-Frank Act rules to set a clearer framework for prediction markets and is working with the U.S. Securities and Exchange Commission to build a digital-asset classification system aimed at avoiding regulatory overlap.