At the center of CFTC Chair Michael S. Selig’s Friday post was the risk of fraud and manipulation crossing state lines, which he cited in defending the agency’s claim to exclusive jurisdiction over prediction markets.
Selig described prediction-market exchanges as firms that bring customers’ purchase and sale quotes together across the country. He kept their nationwide business activity separate from the cross-state fraud and manipulation behind his jurisdiction argument.
Selig said Congress had empowered the commission to apply consistent standards. He said it could also safeguard customer funds and respond to fraudulent or manipulative conduct.
