Michael Selig, President Donald Trump’s nominee to chair the Commodity Futures Trading Commission, testifies during a Senate Agriculture Committee hearing on his nomination on November 19, 2025, on Capitol Hill.
Jonathan Ernst | Reuters
The Commodity Futures Trading Commission filed an amicus brief in federal court on Tuesday asserting the commission’s right to enforce prediction markets rather than individual states, according to Michael Selig, the commission’s new chairman.
In a Wall Street Journal op-ed on Monday, Selig argued that the CFTC has always had authority over determining whether prediction markets and event contracts constitute gambling, as critics have argued. Selig noted that nearly 50 lawsuits are pending against prediction markets and said the CFTC would intervene to prevent state infringement.
“The CFTC can no longer stand by and watch overzealous state governments undermine the agency’s exclusive jurisdiction over these markets by seeking to establish statewide bans on these attractive products,” he said.
The move comes as prediction markets like Calci and Polymarket face legal challenges in multiple states over event contracts. The platform allows users to bet on the outcome of events in pop culture, sports, entertainment, and more.
Critics of prediction markets say its offerings amount to gambling, but Kalsi defends the platform and insists it complies with federal regulations. Sports betting on prediction platforms is compared to legalized sports betting in the US
In late January, in his first public comments as CFTC chairman, Selig said he was open to drafting clear new rules to govern prediction markets and overhauling the agency’s rules regarding involvement in federal and circuit court litigation.
“Where jurisdictional issues are at issue, the Commission has the expertise and responsibility to protect exclusive jurisdiction over commodity derivatives,” he said at the time.
Selig said in an op-ed Monday that the event contracts “serve a legitimate economic function” and operate as “swaps” under CFTC rules, not gambling. He also argued that trading under event contracts is good for the market and for Americans as a whole.
“These exchanges are not the Wild West, as some critics claim, but self-regulatory organizations vetted and overseen by experienced CFTC staff,” Selig wrote.
In a Tuesday video posted to X, Selig said the message to those who challenge the CFTC’s authority is clear: “See you in court.”
“Today, the CFTC is taking an important step toward ensuring these markets have a home here in the United States and ensuring the integrity, resilience, and vibrancy that our nation’s derivatives markets deserve,” he said.
Selig said the amicus brief will be filed with the 9th U.S. Circuit Court of Appeals in support of Crypto.com in its dispute with the Nevada Gaming Control Board.
CNBC could not confirm whether court briefs have been filed.
Disclosure: CNBC and Kalsi have a commercial relationship that includes a minority investment in CNBC.
