The political fight over prediction markets is heating up

CFTC Chairman Michael Selig has thrown his support behind prediction markets, posting a video to X and saying, "Today, the CFTC is taking an important step to ensure that these markets have a place here in America." He also filed a brief arguing that the federal government — not the states — has the authority to regulate prediction market platforms, as states press lawsuits claiming the platforms operate illegal sports-betting systems.

The industry welcomed the move. A spokesperson for The Coalition for Prediction Markets said, "We agree with Chairman Selig — the CFTC has regulated these markets for decades, and they are best equipped to ensure market integrity." Selig went further, praising the markets as ones that "provide useful functions for society," including "hedging commercial risks" and serving "as an important check on our news media and our information streams." Concerns remain widespread, focused on potential insider trading and the spread of gambling.

United States

cftc, michael selig, prediction markets, federal government, state lawsuits, sports betting, market integrity, insider trading, gambling, hedging risks