Michael Selig, President Donald Trump’s nominee to head the Commodity Futures Trading Commission (CFTC), testified before the Senate Agriculture Committee during a hearing on Capitol Hill on November 19, 2025.
The CFTC, under Selig's leadership, took a decisive step on Tuesday by submitting an amicus brief in federal court, reinforcing its authority to regulate prediction markets rather than leaving this responsibility to individual states. Selig elaborated on this stance in a Wall Street Journal op-ed, insisting that the CFTC has historically managed prediction markets and plays a crucial role in determining if event contracts are tantamount to gambling, as some critics suggest.
Selig underscored the presence of nearly 50 ongoing legal cases concerning prediction markets, asserting the CFTC's intention to prevent states from infringing on its territory. "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," he wrote.
This initiative arises as prediction market platforms like Kalshi and Polymarket encounter legal battles across various states regarding event contracts. These platforms enable users to wager on diverse event outcomes in areas such as pop culture, sports, and entertainment.
While critics have equated these prediction markets to gambling, Kalshi defends its operations, asserting compliance with federal guidelines. The nature of sports betting on such platforms has drawn parallels with legalized sports betting practices in the U.S.
During his inaugural public remarks as CFTC chairman at the end of January, Selig committed to developing new, straightforward regulations for prediction markets and reevaluating the agency’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 declared.
In his op-ed, Selig emphasized that event contracts "serve legitimate economic functions" and operate under existing CFTC regulations as "swaps" rather than gambling activities. He argued that trading event contracts is advantageous for the market and the broader American 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 noted.
In a video posted to X on Tuesday, Selig delivered a clear message to entities challenging the CFTC’s jurisdiction: "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 stated.
Selig mentioned that the amicus brief would be filed with the Ninth U.S. Circuit Court of Appeals, supporting Crypto.com in its clash with the Nevada Gaming Control Board.
CNBC has not yet been able to confirm the filing of the amicus brief.
Disclosure: CNBC and Kalshi have a commercial relationship that includes a CNBC minority investment.