During his November 19 nomination hearing for CFTC chair before the Senate Committee on Agriculture, Nutrition and Forestry, Michael Selig — currently chief counsel for the SEC Crypto Task Force — faced extensive questioning from Senators Tina Smith (D-MN), Cory Booker (D-NJ), Elissa Slotkin (D-MI) and Adam Schiff (D-CA) regarding sports event contracts and sports gambling. These senators raised concerns about prediction market platforms offering contracts on sports outcomes, potential conflicts with state and tribal gaming laws, and the need for strong consumer protection and market integrity.
In response, Selig consistently emphasized that the regulatory status of sports event contracts is a complex legal issue best resolved by the courts. He stated that it would be irresponsible to prejudge whether specific contracts constitute “gaming” or “sports gambling,” and repeatedly affirmed his intention to defer to judicial decisions and enforce the law as interpreted by the courts if confirmed.
When asked about the CFTC’s prohibition on gaming-related event contracts under the Commodity Exchange Act, Selig did not affirm the existence of a clear prohibition. Instead, he stressed the interpretive challenges involved, saying, “I intend to always adhere to the law and follow what judicial decisions tell me to follow,” and “I will let the court [decide].”
In addition to deferring to judicial interpretation, Selig emphasized that ensuring market integrity and protecting against manipulation is a core CFTC responsibility for all products it regulates — including sports event contracts, if they are traded on CFTC-regulated markets.
On November 20, Chairman John Boozman (R-AR) announced the Senate Agriculture Committee had advanced Selig’s nomination out of committee, where it awaits consideration by the full U.S. Senate. Boozman notes this is a “critical moment” for the CFTC, as Congress weighs legislation that could expand the agency’s authority, and urged the Senate to “swiftly confirm” Selig’s nomination.
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