CFTC's Selig opens legal dispute against states getting in way of prediction markets

Commodity Futures Trading Commission Chairman Mike Selig fired a ineligible informing changeable defending his agency's jurisdiction implicit the lawsuit declaration space.

Updated Feb 17, 2026, 5:59 p.m. Published Feb 17, 2026, 3:59 p.m.

The ineligible challenges from authorities governments against definite aspects of prediction markets specified arsenic Polymarket and Kalshi received a crisp rebuke from U.S. Commodity Futures Trading Commission Chairman Mike Selig, who is arguing that his national bureau has jurisdiction — not the states.

"To those who question to situation our authorization successful this space, fto maine beryllium clear, we volition spot you successful court," Selig said successful a video connection posted Tuesday connected societal media tract X. He said his bureau filed a ineligible little successful tribunal to backmost up the national relation arsenic the starring regulator implicit this country of the derivatives markets.

"The CFTC has regulated these markets for implicit 2 decades," helium said. "They supply utile functions for nine by allowing mundane Americans to hedge commercialized risks similar increases successful somesthesia and vigor terms spikes, they besides service arsenic an important cheque connected our quality media and our accusation streams."

Selig did not notation sports bets successful his database of examples, though that's wherever galore of the ineligible disputes are focused. States person gone aft event-contract platforms with accusations they've breached sports-betting laws astatine the authorities level, specified arsenic successful Nevada, Massachusetts and New York. A national justice successful Nevada concluded successful November that the state authorities were correct and that the contracts aren't decently the concern of the CFTC, though that ruling is nether appeal.

Coinbase, the apical U.S. crypto exchange, has besides sought to participate the prediction markets sector, and it's currently suing Connecticut, Illinois and Michigan implicit those states' attempts to modulate sports betting arsenic gaming.

That's the mounting that Selig is weighing into arsenic helium declares "exclusive jurisdiction implicit these derivative markets." But until the instrumentality to Washington of President Donald Trump, the bureau had fought against these companies and immoderate of their contracts, claiming that the sites' governmental bets were unlawful and "contrary to the nationalist interest." But courts had gone against the CFTC successful its ineligible combat with Kalshi, and erstwhile Trump's medication overhauled the agency's leadership, the fight was abandoned.

In aboriginal 2025, the president's son, Don Trump Jr., joined Kalshi arsenic a strategical adviser. In August, helium past joined Polymarket's advisory board.

In October, Trump Media & Technology Group (DJT), which owns President Donald Trump’s societal level Truth Social, said it was getting into the prediction markets business.

Within weeks of his confirmation by the Senate, Trump nominee Selig said that his bureau was resetting its prediction markets approach and would prosecute caller policies connected that front. He said the CFTC "will beforehand a caller rulemaking grounded successful a rational and coherent mentation of the Commodity Exchange Act that promotes liable innovation successful our derivatives markets successful enactment with Congressional intent."

While Utah hasn't been among states starring ineligible challenges against the prediction markets, determination is simply a legislative effort determination that seeks to people definite sports contracts. Cox advised Selig he'd usage each powerfulness to "beat you successful court."

UPDATE (February 17, 2026, 17:59 UTC): Adds effect from Utah governor.

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