NASHVILLE, Tenn. — The Commodity Futures Trading Commission (CFTC) is asserting its regulatory authority over prediction markets, with Chairman Mike Selig emphasizing the agency’s commitment to its legal battles against several states. Speaking at the Digital Assets and Emerging Tech Policy Summit on April 12, 2026, Selig reiterated that the CFTC will continue to defend its jurisdiction in court.
Selig stated that the lawsuits against Arizona, Illinois, and Connecticut clearly demonstrate the CFTC’s exclusive authority over commodity derivatives markets. He noted that a recent ruling from the Third Circuit Court supports the agency’s position, reinforcing that prediction markets fall under federal regulation.
“Our view is that the statute is very clear,” Selig said. “If a product is offered on a federally regulated exchange, we regulate it. States cannot impose their gambling laws where federal derivatives laws apply.”
When questioned about the absence of lawsuits against Nevada and Massachusetts, states that have previously secured injunctions against prediction market providers, Selig indicated that these states may not be the last to face legal action. He highlighted that the CFTC has filed an amicus brief in a related case currently before the Ninth Circuit Court of Appeals.
Under the Dodd-Frank Act, the CFTC has the authority to regulate swaps and can prohibit certain types based on public interest considerations, including categories like war and gambling. Selig emphasized that the agency’s lawsuits focus on determining whether products align with public interest, regardless of the underlying events.
“Even if we conduct a public interest analysis, it does not negate our regulatory authority,” he added. The CFTC is also in the process of formalizing its oversight of prediction markets and is open to suggestions on how to refine this process.
In addition to prediction markets, Selig mentioned that the CFTC is reviewing feedback on its recent interpretative guidance published alongside the Securities and Exchange Commission (SEC). This guidance aims to clarify the distinction between commodities and securities, facilitating the self-certification of futures products tied to digital assets.
“We should be very much aligned across agencies,” Selig stated, emphasizing the importance of clear regulatory lines.
Upcoming events include a hearing with CFTC Chair Mike Selig scheduled for Thursday, where he will provide testimony to the House Agriculture Committee. Additionally, a Ninth Circuit Court panel will hear arguments regarding prediction markets and state regulators, with the CFTC participating in the discussions.
CFTC Chairman Mike Selig has reinforced the agency's regulatory authority over prediction markets, asserting its position in ongoing lawsuits against several states. The CFTC aims to clarify its oversight role through formal rulemaking and is open to feedback on its guidance related to digital assets.
Source: CoinDesk