CFTC Chair Mike Selig Asserts Exclusive Federal Jurisdiction Over U.S. Prediction Markets
The CFTC’s latest amicus brief reinforces its claim to federal oversight of prediction markets amid growing state-level gambling law disputes.
Summary
The U.S. Commodity Futures Trading Commission has filed a friend-of-the-court brief defending its authority over prediction markets, as legal battles with state regulators escalate. Chair Mike Selig reiterated the agency’s position of exclusive federal jurisdiction, aligning with prior support for operators Kalshi and Polymarket in disputes with states such as Nevada. The filing comes as state-level enforcement actions classify these markets as unlicensed gambling operations, intensifying the federal–state regulatory conflict.
Terms & Concepts
- Prediction markets: Markets where participants trade contracts based on outcomes of future events, sometimes overseen by derivatives regulators like the CFTC.
- Amicus brief: A legal document submitted by a non-party to provide information, expertise, or insight to a court in deciding a case.
- Commodity Exchange Act: The U.S. federal law that governs trading of commodity futures and options markets, defining the scope and authority of the CFTC.