Sen. Adam Schiff (D-Calif.) isn't mincing words when it comes to the Commodity Futures Trading Commission's stance on prediction markets. On Tuesday, he accused CFTC Chair Mike Selig of being "duplicitous" for his handling of sports betting on these platforms.
In an interview with Aaron Klein at Brookings, Schiff described prediction markets as "pretty indistinguishable" from gaming and sports betting. His concern? These platforms sidestep state-level consumer protections and generate no public revenue. "It really seems to violate state sovereignty and a state's ability to decide whether extensive gaming is in the public interest or not," Schiff said, pointing to his home state of California, where sports betting remains illegal.
Schiff's frustration with Selig runs deeper. He recalled asking Selig during a congressional hearing whether he would let the courts settle the issue of sporting events on prediction markets. Selig said he would. "Well, he's done the exact opposite, which I find very duplicitous. He's leading the CFTC down this path to fully embrace prediction markets," Schiff said.
The CFTC didn't immediately respond to requests for comment.
The agency has been aggressively defending its turf. Selig recently stated, "The CFTC will not allow overzealous state governments to undermine the agency's longstanding authority over these markets." The CFTC has filed lawsuits against Arizona, Connecticut, Illinois, New York, and Wisconsin, and secured a preliminary injunction against state regulation in Arizona.
Meanwhile, Schiff and Sen. John Curtis (R-Utah) have introduced legislation to ban CFTC-regulated platforms from offering sports-related contracts. The fight over who gets to regulate these markets—and whether they're betting or investing—is far from over.
