CFTC Chair: Predicts that market oversight authority is exclusively federal; states have no power to replace it with state law

Gate News: On April 13, Mike Selig, Chair of the U.S. Commodity Futures Trading Commission (CFTC), said clearly in an interview that the CFTC has exclusive regulatory authority over prediction markets, and that the states have no right to replace federal derivatives regulation with state law. Selig emphasized that regardless of whether the underlying relates to sports, politics, or other areas, as long as it is a product that a CFTC-regulated trading platform lawfully offers, it falls under CFTC jurisdiction. This statement comes as the CFTC has brought legal action against the states of Arizona, Illinois, and Connecticut to strengthen its regulatory leadership over prediction markets. Selig said that the CFTC is clarifying the details of prediction market oversight through formal rulemaking procedures, and welcomes suggestions from all sectors on the assessment process.

Selig also mentioned the final version of the digital asset classification guidance jointly released by the CFTC and the SEC last month, which draws clear boundaries between tokenized securities and commodities. Going forward, if companies want to self-certify digital asset futures products, regulators can determine the token’s nature directly based on this classification framework, ensuring that the positions of the two agencies remain aligned and consistent.