CFTC Chairman: Predicts Market Oversight Authority Exclusive to Federal Government, States Have No Power to Intervene

On April 13, U.S. Commodity Futures Trading Commission (CFTC) Chairman Mike Selig explicitly stated during an interview that the CFTC holds exclusive regulatory authority over prediction markets, and states may not substitute state law for federal derivatives regulation. Selig emphasized: “Regardless of whether the underlying involves sports, politics, or other areas, any product offered by a trading platform under CFTC oversight falls within our jurisdiction.” This comment comes as the CFTC is suing three states—Arizona, Illinois, and Connecticut—to solidify its regulatory dominance over prediction markets. Selig added that the CFTC is clarifying prediction market oversight rules through formal rulemaking and welcomes input from all sectors on the evaluation process. Beyond the prediction market dispute, Selig noted the final version of digital asset classification guidance jointly issued by the CFTC and SEC last month, which outlines clear boundaries between tokenized securities and commodities. Going forward, if companies seek to self-certify digital asset futures products, regulators will be able to directly determine a token’s nature using this framework—ensuring alignment between the two agencies.