CFTC Chair: Will Take Prediction Market Jurisdiction Dispute to Supreme Court if Necessary, Crypto Exchanges Can Voluntarily Join New Regulatory Framework

Michael Selig, Chairman of the U.S. Commodity Futures Trading Commission (CFTC), said in an interview with CNBC that the CFTC has exclusive jurisdiction over event contracts, will push related litigation to the U.S. Supreme Court if necessary, and will prevent states from suing CFTC-regulated exchanges on grounds of unlicensed gambling operations.

Regarding the proposed crypto regulatory framework, Selig said that several major crypto exchanges have already registered with the CFTC due to offering derivatives such as perpetual contracts, and once the new rules take effect, they can add spot trading on their platforms. In addition, some newly entering institutions have also sought to register with the CFTC in order to avoid applying for licenses in all 50 U.S. states individually. For exchanges that currently do not offer margin, leverage, or financing transactions, the framework will adopt a voluntary participation mechanism. (CNBC)