Michael Selig, President Donald Trump's nominee for Commodity Futures Trading Commission (CFTC) chairman, appeared before the Senate Agriculture Committee on Capitol Hill, November 19, 2025, during his nomination hearing.
The CFTC recently took action to affirm its jurisdiction over prediction markets at a federal level, as stated by its new chairman, Michael Selig. On Tuesday, the agency filed an amicus brief in federal court to assert its right to govern these markets, countering the authority of individual states.
In a Wall Street Journal op-ed published Monday, Selig defended the CFTC's oversight of prediction markets by arguing that the agency has always had the mandate to regulate them and assess if the event contracts offered are akin to gambling, as detractors have suggested. Highlighting almost 50 ongoing legal actions against prediction markets, Selig emphasized that the CFTC intends to prevent states from interfering.
"The CFTC will no longer sit idly by while overzealous state governments undermine the agency's exclusive jurisdiction over these markets by seeking to establish statewide prohibitions on these exciting products," Selig asserted.
This action comes as prediction markets, such as Kalshi and Polymarket, face multiple state-level legal challenges concerning event contracts that enable users to wager on outcomes in fields like pop culture, sports, and entertainment.
Detractors contend that these markets amount to gambling, though platforms like Kalshi claim adherence to federal regulations, likening their operation to legalized sports betting in the U.S.
In his inaugural public statements as CFTC chairman last January, Selig announced plans to formulate new regulations for prediction markets and review the CFTC's participation in federal and circuit court proceedings.
"Where jurisdictional questions are at issue, the Commission has the expertise and responsibility to defend its exclusive jurisdiction over commodity derivatives," he previously stated.
In his op-ed, Selig argued that event contracts offer legitimate economic benefits, functioning according to CFTC's "swaps" regulations instead of gambling frameworks. He maintained that trading these contracts is advantageous for both the markets and the general public.
"These exchanges aren't the Wild West, as some critics claim, but self-regulatory organizations that are examined and supervised by experienced CFTC staff," Selig wrote.
In a video posted to X on Tuesday, Selig directly addressed those questioning the CFTC's authority: "We will see you in court."
"Today, the CFTC is taking an important step to ensure that these markets have a place here in America and have the integrity and resilience and vibrancy that our derivative markets deserve," he declared.
Selig noted that the amicus brief would be filed with the Ninth U.S. Circuit Court of Appeals, supporting Crypto.com in its legal battle against the Nevada Gaming Control Board.
CNBC was unable to verify the filing of the amicus brief.
Disclosure: CNBC has a commercial relationship with Kalshi, which includes a minority investment by CNBC.