🔥CFTC Chair: Prediction market regulatory authority exclusively belongs to the federal government; states have no right to intervene

Mike Selig, Chairman of the U.S. Commodity Futures Trading Commission (CFTC), said in an interview that the CFTC has “exclusive regulatory authority” over prediction markets, and that states have no right to replace federal derivatives regulation with state laws. Selig emphasized: “No matter whether the underlying involves sports, politics, or other areas, as long as the product is legally offered by a trading platform that is regulated by the CFTC, it falls under our jurisdiction.” This statement comes at a time when the CFTC is suing the states of Arizona, Illinois, and Connecticut in order to strengthen its regulatory leadership over prediction markets. Selig said the CFTC is clarifying the regulatory details for prediction markets through a formal rulemaking process, and welcomes suggestions from all sectors regarding the assessment process. In addition to prediction market disputes, Selig also mentioned that the CFTC and the SEC last month…