Commodity Futures Trading Commission Chair Michael Selig said the agency had filed an amicus brief to defend its exclusive jurisdiction over prediction markets amid mounting state-level lawsuits.
In a video posted to X, Selig said the regulator would respond to what he described as an “onslaught of state-led litigation” targeting platforms offering event contracts, which he equated with derivatives markets under federal oversight.
“Prediction markets aren’t new — the CFTC has regulated these markets for over two decades,”
Said Michael Selig, adding:
“They provide useful functions for society by allowing everyday Americans to hedge commercial risks... they also serve as an important check on our news media and our information streams.”
Selig warned that any state entities challenging the CFTC’s authority would be met in court, as platforms including Coinbase, Crypto.com, Kalshi and Polymarket face legal scrutiny.
Last week Polymarket sued the state of Massachusetts, arguing that only the CFTC has authority to regulate such markets, while 23 US senators urged Selig to abstain from intervening in pending litigation and warned that reinterpretation of statutory prohibitions could place the Commission in conflict with state governments.
The dispute unfolds as lawmakers weigh a broader digital asset framework under the CLARITY Act, which passed the House in July but faces uncertainty in the Senate despite advancing through committee.
Selig is scheduled to address progress on the bill at an event hosted by World Liberty Financial, underscoring the political and regulatory stakes surrounding prediction markets and federal crypto oversight.
At the time of reporting, World Liberty Financial price was $0.1085.