The Commodity Futures Trading Commission (CFTC) is stepping in to stop what it calls an “onslaught” of state-level regulation of prediction markets. CFTC Chairman Michael Selig said Tuesday in a video posted on X that the agency has filed a “friend of the court brief” in support of Crypto.com in its escalating legal battle with regulators in Nevada. The move is significant because it marks the first time under Selig that the CFTC has taken sides in what is shaping up to be an epic fight between regulators and prediction markets, platforms that allow users to trade contracts tied to a wide range of events, from local elections to the Super Bowl. By intervening, Selig’s CFTC is effectively arguing that prediction markets are federally regulated and not subject to state-level gambling laws. “Over the past year, American prediction markets have been hit with an onslaught of state-led litigation,” Selig said…
