CFTC Commissioner Selig Challenges State Bans on Crypto Prediction Markets in Legal Dispute

CFTC Commissioner Caroline Pham has initiated a legal challenge against state-level restrictions that hinder the operation of prediction markets, including those based on cryptocurrencies and blockchain technology. In a formal statement, Pham argued that such state-level prohibitions create regulatory uncertainty and stifle innovation in emerging financial sectors. She emphasized the Commodity Futures Trading Commission's (CFTC) federal jurisdiction over these markets, suggesting that conflicting state laws could fragment the national regulatory framework. This move is seen as a significant step in clarifying the legal landscape for crypto-based prediction platforms and could pave the way for their broader adoption and integration into the regulated financial ecosystem. Industry advocates view the dispute as a bullish signal for the future of decentralized finance (DeFi) and on-chain prediction applications.