Coalition for Prediction Markets Welcomes Selig Support as CFTC Signals Shift
The Coalition for Prediction Markets responds to Mike Selig’s remarks as CFTC leadership signals growing regulatory support for event contracts.
The Coalition for Prediction Markets has released a public statement welcoming recent comments from Mike Selig, signaling what the group describes as growing momentum toward regulatory clarity for prediction markets in the United States.
The statement follows Selig’s remarks supporting prediction markets as legitimate financial tools and comes amid broader signals from the Commodity Futures Trading Commission that its stance on event contracts, particularly those tied to real-world outcomes, is evolving.
Together, the developments suggest a potential inflection point for prediction markets as they seek firmer footing within the federal regulatory framework.
Coalition Praises Recognition of Prediction Markets’ Value
In its statement, the Coalition said Selig’s comments reflect a more accurate understanding of how prediction markets function and the role they can play in information aggregation and price discovery.
The group emphasized that prediction markets have operated for decades under federal oversight and should not be conflated with gambling products simply because they involve uncertain outcomes.
Key themes from the Coalition’s statement include:
- Prediction markets are regulated financial instruments
- Existing laws already prohibit insider trading and manipulation
- Event contracts can provide public value through forecasting
- Clear rules are preferable to blanket restrictions
The Coalition framed Selig’s comments as a constructive step toward evidence-based regulation rather than policy driven by perception or political pressure.
Selig’s Remarks Add Weight Inside the CFTC
Selig has emerged as one of the most vocal supporters of prediction markets within the CFTC, arguing that concerns around insider trading and market abuse can be addressed using existing enforcement tools.
He has pushed back on the notion that prediction markets inherently resemble gambling, noting that many financial instruments are tied to uncertain future events without being regulated as betting products.
According to the Coalition, Selig’s position demonstrates that support for prediction markets is not limited to industry participants but extends into the regulatory community itself.
CFTC Leadership Signals Broader Support
The Coalition’s statement also comes as CFTC leadership has publicly acknowledged the need for a more refined regulatory approach to prediction markets.
Recent comments from CFTC officials suggest the agency is moving away from broad prohibitions in favor of tailored rules that distinguish between different types of event contracts.
Industry observers view this as a notable shift, particularly after months of uncertainty surrounding whether sports- and event-based contracts would face outright bans.
Rather than signaling deregulation, the agency has emphasized:
- Market integrity and surveillance
- Enforcement against manipulation
- The importance of regulatory clarity
The Coalition said these signals align with its long-standing position that well-regulated prediction markets can coexist with other financial products.
Industry Context: Growing Scrutiny, Growing Advocacy
Prediction markets have drawn increased attention as platforms expand offerings tied to politics, economics, and sports. That visibility has sparked opposition from some industries, particularly state-regulated sportsbooks, which argue that similar products should face similar regulatory burdens.
The Coalition’s statement did not directly address sportsbooks, but it reiterated that prediction markets fall under federal derivatives law, not state gambling statutes.
By issuing a public response now, the Coalition appears intent on shaping the narrative as regulators consider next steps.
A Push for Regulatory Certainty
Central to the Coalition’s message is the need for clarity. The group argues that uncertainty harms innovation, discourages responsible operators, and benefits unregulated alternatives.
Rather than advocating for looser oversight, the Coalition said it supports:
- Clear approval processes
- Transparent compliance standards
- Consistent enforcement
The group emphasized that prediction markets are prepared to operate under firm rules, provided those rules recognize the distinct nature of financial event contracts.
What Comes Next
While no immediate regulatory changes have been announced, the convergence of Selig’s remarks, CFTC leadership commentary, and public advocacy from the Coalition suggests the debate is entering a new phase.
For prediction markets, the focus now shifts to how the CFTC formalizes its evolving position through rulemaking or guidance.
For regulators, the challenge will be balancing innovation with public policy concerns, without resorting to overly broad restrictions.
As the Coalition’s statement makes clear, prediction markets believe the conversation is no longer about whether they belong in regulated financial markets, but about how those regulations should be defined.
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