CFTC Chair: Predictive market regulation authority is exclusively federal, and states have no right to intervene

Mars Finance News, April 13 — The Chairman of the U.S. Commodity Futures Trading Commission (CFTC), Mike Selig, explicitly stated in an interview that the CFTC has “exclusive regulatory authority” over prediction markets, and states have no authority to replace federal derivatives regulation with state laws. Mike Selig emphasized: “Regardless of whether the underlying involves sports, politics, or other fields, as long as the product is legally offered by a CFTC-regulated trading platform, it falls under our jurisdiction.” This statement comes as the CFTC is suing the states of Arizona, Illinois, and Connecticut to reinforce its regulatory dominance over prediction markets. Selig said the CFTC is clarifying prediction market regulations through formal rulemaking procedures and welcomes input from all sectors on the assessment process. In addition to prediction market disputes, Selig also mentioned the final draft of the joint digital asset classification guidelines released last month by the CFTC and SEC, which delineate clear boundaries between tokenized securities and commodities. In the future, if companies wish to self-certify digital asset futures products, regulators can directly determine the nature of the tokens based on this classification framework, ensuring consistent positions between the two agencies.