CFTC Chairman: Market-related state-level lawsuits may ultimately reach the Supreme Court.

Michael Selig, Chairman of the U.S. Commodity Futures Trading Commission (CFTC), stated at Consensus 2026 that the CFTC has filed lawsuits against regulators in approximately five to six states, including Arizona, Connecticut, Illinois, and New York, with the core dispute being the allocation of regulatory authority over prediction market events. He indicated that if different circuit courts disagree, the cases could ultimately be appealed to the U.S. Supreme Court. Selig stated that the Commodity Exchange Act explicitly grants the CFTC exclusive regulatory authority over commodity derivatives, and prediction market event contracts are financial derivatives traded on federally regulated exchanges, fundamentally different from traditional entertainment venues. He believes that some state regulators are attempting to challenge the validity of federal law through local regulations, and the CFTC will continue to pursue legal action against such actions.