The Commodity Futures Trading Commission has filed an amicus brief to defend its exclusive jurisdiction over US prediction markets as state-level legal challenges escalate.
Chair Mike Selig said in a video posted on X that the agency is responding to “an onslaught of state-led litigation” targeting event-based derivative platforms.
“Prediction markets aren’t new,”
Selig said, adding:
“The CFTC has regulated these markets for over two decades.”
He argued that prediction markets allow participants to hedge commercial risks such as energy prices and weather volatility, while also contributing to price discovery and information flows.
The legal friction comes as the US Securities and Exchange Commission has indicated that certain event-based contracts may qualify as securities, potentially bringing them under separate oversight.
States including Nevada have sought to curb operations of crypto-linked prediction platforms, though a Nevada court recently declined to block Coinbase from offering certain prediction market services.
Selig stressed that the CFTC intends to protect the “integrity, resilience, and vibrancy” of US derivatives markets, warning challengers:
“We will see you in court.”