CFTC chief Selig says states are trying to "lock up" prediction market CEOs, and wants the Supreme Court to settle who regulates them

The head of the Commodity Futures Trading Commission has criticized states that are pursuing prediction market companies. Speaking on Friday at the Cantor Convergence conference, held in Miami Beach according to Coin Edition, Chairman Michael Selig said states were bringing criminal charges, "essentially trying to lock up founders and CEOs of these companies," The Block reported. He defended the platforms as operating under what he calls the CFTC's exclusive jurisdiction, said he was concerned that some states were getting very aggressive and said the agency would keep defending its authority.

At the heart of the fight is whether event contracts on platforms such as Kalshi and Polymarket are regulated derivatives or illegal gambling. The CFTC is in disputes with roughly a dozen states and cities over that question, according to The Block, and Selig wants the Supreme Court to settle it rather than leave it to courts case by case in multiple states. Coin Edition also reported that he signaled the agency could take the dispute to the high court.

The remarks came a day after the Justice Department and the CFTC sued Arkansas Attorney General Tim Griffin to stop his enforcement action against Kalshi, and after Louisiana filed a lawsuit against companies including Kalshi, Polymarket, Robinhood and Coinbase. The state lawsuits argue that the contracts amount to illegal gambling.