Chairman Says CFTC Will Intercede in State Litigation Against Prediction Markets

• CFTC Chairman Michael Selig today announced the commission will intercede in state litigation against prediction markets
• ‘We will see you in court,’ Selig said to opponents of the prediction markets in a video he posted on X
• The CFTC filed a “friend of the court” brief today to defend its jurisdiction over the markets

Commodity Futures Trading Commission Chairman Michael Selig today revealed the commission will be taking a strong stance in defending its jurisdiction over prediction markets.

One day after publishing an op-ed in the Wall Street Journal, Selig confirmed the Commodity Futures Trading Commission (CFTC) will be actively defending its exclusive jurisdiction over prediction markets in the court in a social media post he made today.

“To those who seek to challenge our authority in this space, let me be clear. We will see you in court,” he warned.

Becoming Involved in State Litigation

Selig touched on the number of state lawsuits currently ongoing against prediction market companies. In response, Selig said the CFTC has filed a “friend of the court brief,” to defend “its exclusive jurisdiction over these derivate markets.” In his op-ed piece in the Wall Street Journal, Selig said the CFTC would file the brief in support of Crypto.com and its lawsuit against Nevada in the U.S. Court of Appeals for the Ninth Circuit.

“Today, the CFTC has taken an important step to ensure these markets have a place here in America and have the integrity and resiliency and vibrancy that our derivatives markets deserve,” he said.

It’s a marked change from comments Selig made during his November confirmation hearing for CFTC chair. During a nomination hearing in November in front of the U.S. Senate Committee on Agriculture, Nutrition, and Forestry, Selig said several times he would will depend on the courts, ongoing litigation, and Congress regarding the CFTC’s role in regulating sports event contracts.

He made it clear during the hearing he would depend on court opinions to determine the CFTC’s role in regulating the sports event markets.

It now appears that he will no longer keep the CFTC on the sideline as the lawsuits continue. While Selig never mentioned sports contracts by name during his social media video or op-ed, the majority of state lawsuits against prediction markets center around the regulation of the sports event contracts.

Utah Governor Speaks Out

Utah Gov. Spencer J. Cox (R) spoke out against Selig’s message, vowing to take the CFTC Chairman to court if the prediction markets and sports event contracts remain in the sate.

“Mike, I appreciate you attempting this with a straight face, but I don’t remember the CFTC having authority over the “derivative market” of LeBron James rebounds. These prediction markets you are breathlessly defending are gambling—pure and simple. They are destroying the lives of families and countless Americans, especially young men. They have no place in Utah. Let me be clear, I will use every resource within my disposal as governor of the sovereign state of Utah, and under the Constitution of the United States to beat you in court,” he said on X.

Former New Jersey Gov. Chris Christie (R) also slammed the message, decrying Selig and the CFTC for attempting to take away state rights and growing the federal government.

“Violating the rights of states who have been regulating sports betting and the rights of the states who oppose sports betting is not the purview of another alphabet soup federal agency. That’s what you’re doing. Yes I am standing up for the rights of all 50 states. Proud of it.”