In a Wall Street Journal letter to the editor, Commodity Futures Trading Commission Chairman Michael S. Selig defended the agency’s exclusive authority over prediction markets under the Commodity Exchange Act and pushed back against calls to treat them as gambling. He argued that prediction markets provide benefits to individuals, businesses and the broader economy, and said regulating them away would risk driving activity offshore into less regulated venues. Selig also rejected claims that insider trading is widespread in these markets or that the CFTC’s controls are weaker than elsewhere. He said the agency will find and prosecute insider trading to the full extent of the law, and added that during his first 100 days leading the CFTC it strengthened and modernized its approach to misconduct and brought enforcement actions against violations of federal law. The letter further described prediction market platforms as federally regulated exchanges with clearinghouses and investor protections comparable to those in other derivatives markets.
Commodity Futures Trading Commission 2026-05-01
Commodity Futures Trading Commission chairman defends exclusive authority over prediction markets and rejects insider trading criticism
Commodity Futures Trading Commission Chairman Michael S. Selig, in a Wall Street Journal letter, defended the agency’s authority over prediction markets under the Commodity Exchange Act and rejected calls to classify them as gambling, warning this could push activity offshore. He disputed claims of widespread insider trading and weak controls, stating the agency will prosecute misconduct and has strengthened enforcement, and emphasized that prediction market platforms operate as federally regulated exchanges with clearinghouses and investor protections comparable to other derivatives markets.