Michael Selig, U.S. President Trump’s nominee to function Commodity Futures Buying and selling Fee (CFTC) chairman, testifies in a Senate Agriculture Committee listening to on his nomination on Capitol Hill in Washington, D.C., U.S., Nov. 19, 2025.
Jonathan Ernst | Reuters
The Commodity Futures Buying and selling Fee filed an amicus transient in federal courtroom on Tuesday to claim the company’s proper to implement prediction markets as an alternative of particular person states, in response to its new chairman, Michael Selig.
Selig argued in a Monday Wall Avenue Journal op-ed that the CFTC has all the time had authority over prediction markets and figuring out whether or not the occasion contracts represent playing, as critics allege. Selig famous almost 50 energetic authorized instances in opposition to prediction markets and stated the CFTC can be stepping in stop state encroachment.
“The CFTC will now not sit idly by whereas overzealous state governments undermine the company’s unique jurisdiction over these markets by in search of to determine statewide prohibitions on these thrilling merchandise,” he wrote.
The transfer comes as prediction markets like Kalshi and Polymarket face authorized challenges in a number of states over occasion contracts. The platforms permit customers to guess on the outcomes of occasions in popular culture, sports activities, leisure and extra.
Critics of prediction markets have argued that the choices quantity to little greater than playing, although Kalshi has defended its platform and argued that it abides by federal laws. Sports activities betting on the prediction platforms have drawn comparisons to legalized sports activities betting within the U.S.
In his first public feedback as CFTC chairman on the finish of January, Selig stated he was ready to draft new, clear guidelines to control prediction markets and revisit the company’s guidelines on involvement in federal and circuit courtroom instances.
“The place jurisdictional questions are at concern, the Fee has the experience and duty to defend its unique jurisdiction over commodity derivatives,” he stated on the time.
In his Monday op-ed, Selig stated occasion contracts “serve legit financial features” and function underneath CFTC guidelines as “swaps” reasonably than playing. He additionally posited that buying and selling on occasion contracts are helpful for the market and for People at giant.
“These exchanges aren’t the Wild West, as some critics declare, however self-regulatory organizations which are examined and supervised by skilled CFTC workers,” Selig wrote.
In a Tuesday video posted to X, Selig stated his message to those that problem the CFTC’s authority is obvious: “We are going to see you in courtroom.”
“Immediately, the CFTC is taking an essential step to make sure that these markets have a spot right here in America and have the integrity and resilience and vibrancy that our by-product markets deserve,” he stated.
Selig stated the amicus transient can be filed within the Ninth U.S. Circuit Courtroom of Appeals in help of Crypto.com in its dispute with the Nevada Gaming Management Board.
Disclosure: CNBC and Kalshi have a industrial relationship that features a CNBC minority funding.