CFTC chair signals legal fight over prediction market jurisdiction

U.S. Commodity Futures Trading Commission (CFTC) Chairman Michael Selig has asserted federal jurisdiction over prediction markets like Polymarket and Kalshi, signaling a potential legal battle. In a video posted on X, Selig stated that anyone challenging the agency's authority would be met in court, emphasizing that the CFTC has regulated these markets for over 20 years. He argued that jurisdiction lies with the CFTC as a federal agency, not with state governments, and added that the commission has submitted a legal opinion to the courts to support its primary regulatory role. CoinDesk noted that while Selig did not directly mention sports betting, many of the legal disputes in this area are centered on it. Previously, states including Nevada, Massachusetts, and New York have filed lawsuits against prediction market platforms, alleging violations of state-level sports betting laws.