Senate Democrats Demand CFTC Chair Selig Reverse Prediction Markets Support
Posted on: February 16, 2026, 09:39h.
Last updated on: February 16, 2026, 09:39h.
- Senate Democrats want CFTC Chair Selig to reconsider rewriting the independent federal agency’s regulations regarding sports event contracts
- Selig appears intent on solidifying prediction markets’ ability to offer trading contracts involving sporting outcomes
On Friday, Senate Democrats wrote the head of the United States Commodity Futures Trading Commission (CFTC) requesting that he rescind his support of prediction markets offering trading contracts involving the outcome of sporting events.
Earlier this month, the CFTC, at the direction of Chair Michael Selig, withdrew a notice of proposed rulemaking that included sporting events in the definition of “gaming.”
Prediction markets are derivative trading platforms that facilitate the buying and selling of shares on binary markets and yes/no contracts. For more than 15 years, CFTC Regulation 40.11 has prohibited prediction markets from offering event contracts that reference “terrorism, assassination, war, gaming, or any activity that is unlawful under state or federal law, or that involves, relates to, or references an activity that is similar to any of those activities and that the CFTC determined by rule or regulation to be contrary to the public interest.”
Selig, appointed by President Donald Trump in October and sworn in on Dec. 22, plans to use his tenure to rewrite the rules on prediction markets to allow CFTC-regulated platforms to offer contracts involving sports. A group of 23 Democratic lawmakers in the US Senate is requesting that he reconsider.
Democratic CFTC Letter
In a letter to Selig signed by 23 Senate Democrats, including Nevada’s delegation, US Sens. Catherine Cortez Masto and Jacky Rosen, the group asks that the CFTC boss uphold the longstanding ban on gaming and sports event contracts.
It appears that you intend to steer the Commission in a direction that is at odds with the intent of the Commodity Exchange Act, respect for state law, and tribal sovereignty,” the Democrats opined.
“Should the Commission initiate a rulemaking on event contracts, as you suggested, we ask that those rules adhere to the statute and prior regulations, and reiterate that contracts involving gaming (including sports), war, terrorism, assassination, or other enumerated activities are barred and may not be listed, traded, or cleared under the Commodity Exchange Act. Congress made its intent clear and determined that these activities are ‘contrary to the public interest,'” the letter continued.
The Senate Democrats additionally request that Selig keep the CFTC out of pending litigation regarding prediction markets involving contracts tied to the aforementioned activities.
Along with Cortez Masto and Rosen, notable signees of the letter included Sens. Adam Schiff (California), Richard Blumenthal (Connecticut), Amy Klobuchar (Minnesota), and Cory Booker (New Jersey).
‘Real-World Consequences’
The CFTC moving towards providing a clearer regulatory framework to allow prediction markets to engage in sports contracts, the Senate Democrats believe, would come with “real-world consequences.”
“Prediction market platforms are offering contracts that mirror sportsbook wagers and, in some cases, contracts tied to war and armed conflict. These products evade state and tribal consumer protections, generate no public revenue, and undermine sovereign regulatory regimes,” the letter stated.
There are worries among gaming experts in the highly regulated industry that the CFTC easing its banned contracts definitions could lead to prediction markets engaging in casino products, with examples ranging from the event contracts on the outcome of a roulette spin and whether a slot machine spin will win or lose.
Trump Media and Technology Group, the parent entity of Truth Social, is readying Truth Predict, a prediction market that will offer contracts on sports and politics.
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