New CFTC Nominee Won’t Take Stance on Prediction Markets

It appears the CFTC will soon have a new head.

New White House CFTC chair nominee Michael Selig sat before the Senate Agricultural, Nutrition, and Forestry Committee this week. While most of the questions were centered on crypto, several were about sports prediction markets. Lawmakers pushed for Selig to deliver an opinion or promises regarding restrictions around the industry, but Selig refused to engage.

The nominee refused to engage in the debates, instead insisting that these questions should be left up to the courts. He cited several current cases being decided, and promised to abide by the rulings. 

“These are complex issues as to the interpretation of what it means to constitute ‘gaming.’ And of course, I have the utmost respect for our judges who are working on these issues in the court system, and I intend to always adhere to the law and follow the judicial decisions.” Selig told the committee.

Lawmaker questions centered on restricting platforms from operating on tribal lands, as well as in states that view them as offering illegal gambling. With Selig refusing to provide opinions or plans, those questions went largely unanswered.

Selig Avoids Quintenz’s Mistakes

Unlike Selig, former nominee Brian Quintenz was adamant about his support for sports prediction markets during hearings. He was combative and gave little indication that he would consider the requested restrictions from states or tribes. That stance led to much opposition, which played a part in his nomination ultimately being withdrawn.

While it seems clear that Selig supports the prediction market industry, he refused to confirm that when questioned. 

Some have accused Selig’s deference to court rulings as a way out of answering those questions, but it's hard to argue with the logic. Any action taken by the CFTC would be viewed in a political context, angering much of the population. By waiting for the many court cases surrounding the industry to conclude, the regulator removes party politics and preserves its independence.