CFTC defends authority over prediction markets and rejects insider trading claims
Updated
Updated · The Wall Street Journal · May 1
CFTC defends authority over prediction markets and rejects insider trading claims
15 articles · Updated · The Wall Street Journal · May 1
Chairman Mike Selig, writing from Washington, said in his first 100 days the agency had modernised oversight and brought enforcement actions against federal law violators.
He said prediction markets are federally regulated exchanges with clearinghouses and investor protections like other derivatives markets, and warned overregulation would push activity offshore.
Selig said the Commodity Exchange Act gives the CFTC exclusive jurisdiction and argued keeping the sector onshore helps protect information markets from manipulation by foreign adversaries.
As prediction markets face insider trading scandals and legal battles, can regulators truly keep them safe—or is manipulation inevitable as these markets grow?
With states and federal agencies clashing over prediction markets, could a Supreme Court decision reshape the entire landscape of online financial speculation?
Are prediction markets blurring the line between investment and gambling, and what new risks could emerge as they become a trillion-dollar global industry?