CFTC Promises a Clear Road Map for Prediction Market Rules
Mike Goodpaster Published 26/08/2026
The Commodity Futures Trading Commission (CFTC) is promising to introduce clear rules to govern how prediction market sites will work. CFTC chair Michael S. Selig reaffirmed his organization's regulatory authority over prediction markets. He also made a vow to establish clear "rules of the road" for how prediction market sites will work going forward.
The statement came during the inaugural meeting of the CFTC's Innovation Advisory Committee (IAC) in Washington, D.C. The IAC was created to advise the CFTC on complex issues at the intersection of technology, law, policy, and finance. This council of American innovators, entrepreneurs, thinkers, and builders provides insights and recommendations to the CFTC to help ensure its regulations keep pace with the rapid pace of innovation on the new frontier of finance.
Selig blames past administrations for current prediction market issues
Taking a page from his boss, U.S. President Donald Trump's playbook, Selig sought to push all of the responsibility for the current legal problems plaguing prediction market sites on the backs of his predecessors at the CFTC.
“Comprehensive regulatory framework to address the unique policy considerations associated with these products [should have been put into place]," Selig said during the meeting.
“Instead, prior administrations put their heads in the sand, thinking that the markets would go away, and, when that failed, tried to outlaw the products entirely."
Selig made a solemn vow that going forward under his leadership, there would be clear and concise rules governing what prediction market sites could and couldn't do.
"We’re once again at an inflection point," Selig said in a release. "Another moment when the choices we make will shape the markets and opportunities of the decades ahead.
"We’ve crossed the Rubicon and are standing at a new frontier of finance. It’s not a question of whether innovations like blockchain, artificial intelligence, and prediction markets will transform our markets. It’s a question of where this innovation will take place and who will write the rules.
"In this administration, we are choosing to lead. Under President Trump’s leadership, America will not simply participate in this new frontier of finance. We will shape it."
CFTC still believes that it has the legal right to regulate sports event contracts
Despite losing in court to state regulators and state attorneys general, who are successfully making legal challenges claiming that sports-event contracts are illegal sports betting. Selig is refusing to budge. He is still expressing confidenec that his organization is the only one with the legal right to serve as the regulator of these markets.
“The prior administration attempted to prohibit event contracts on politics, sports, and cultural events in the name of the public interest – without ever defining what is in the ‘public interest,’" Selig said
He intends to write clear language giving the CFTC exclusive rights to oversee sports event contracts.
CFTC wants to define what gaming is
During the meeting, Selig cited the importance of clearly defining what the term "gaming" covers.
“Contracts are at the risk of rejection based on arbitrary whims of political biases, and DCMs [designated contract markets] have been left operating in the dark,” Selig said, according to reporting by CNBC. Prediction markets operate as DCMs.
He also called out New York Attorney General Letitia James. Her office has successfully challenged prediction market sports event contracts as illegal sports betting.
“We’ve also protected federally regulated prediction markets from rogue state attorneys general like Letitia James, who seek to nullify federal law and drive these markets offshore to unregulated and foreign venues,” Selig said.