Commodity Futures Trading Commission Chairman Michael Selig is escalating his rebuke regarding how local jurisdictions are managing legal actions directed at prediction market platforms and their leadership.
During an appearance at the Cantor Convergence conference, Selig characterized the state-level litigation as exceptionally severe and reiterated his backing for platforms functioning via what he consistently defines as the CFTC’s exclusive jurisdiction.
He stated that they are witnessing states file criminal accusations, effectively attempting to imprison founders and chief executives of these businesses that provide legal services under a federal framework.
These remarks arrive amid ongoing conflicts between the CFTC and approximately twelve states and municipalities concerning whether event contracts available on prediction platforms such as Polymarket and Kalshi amount to unlawful wagering. Selig contended that these disputes ought to be resolved judicially without endangering leaders with incarceration.
He noted that one party claims it is gambling while another asserts it is a derivative, and such a disagreement should not carry the penalty of prison time.
Rather than battling individually across numerous states, Selig hopes the matter reaches the Supreme Court to firmly establish the commission’s power.
He questioned whether every prominent exchange CEO faces imprisonment in Utah or if the parties can simply resolve the merits before the Supreme Court.
On Thursday, the CFTC and the Department of Justice took legal action against Arkansas Attorney General Tim Griffin to halt his enforcement efforts directed at Kalshi.
Additionally, Louisiana initiated a lawsuit on Thursday focused on entities like Coinbase, Robinhood, Polymarket, and Kalshi.
Selig expressed worry that certain states are growing overly aggressive and affirmed that they will persistently protect their authority.
Originally published at https://www.theblock.co/news/regulation/2026-11-13-cftcs-selig-accuses-states-trying-lock-up-prediction-market-founders-440199.
