CFTC's Selig says states are trying to 'lock up' prediction market founders, wants Supreme Court to settle it

Commodity Futures Trading Commission Chair Michael Selig escalated his fight with state regulators on Thursday, telling an audience at the Cantor Convergence conference that states pursuing prediction market platforms are "really egregious" and are "essentially trying to lock up founders and CEOs of these companies that are offering lawful products under a federal regime," according to The Block.

The dispute is jurisdictional. Selig has long argued the CFTC has "exclusive jurisdiction" over the event contracts offered by platforms such as Kalshi and Polymarket. Roughly a dozen states and cities disagree, contending those contracts are illegal gambling rather than federally regulated derivatives. Selig's position is that the question — "Somebody says it's gambling, somebody says it's a derivative" — belongs in court, not in a criminal docket: "That's not something that should be at the risk of going to jail."

Rather than litigate state by state, Selig said he wants the matter taken to the Supreme Court to settle the CFTC's authority once and for all. "I don't understand whether we're going to have every major CEO of an exchange locked up in a jail cell in Utah, or if we can just go to the Supreme Court and hash this thing out on the merits," he said.

The remarks landed the same day as two concrete legal moves. The Block reported that on Thursday the Justice Department and CFTC sued Arkansas Attorney General Tim Griffin to block his action against Kalshi, and that Louisiana filed suit targeting Kalshi, Polymarket, Robinhood and Coinbase. "I am concerned that some of the states are getting very aggressive," Selig said. "We'll continue to defend our jurisdiction."

Key facts

• Selig, speaking at the Cantor Convergence conference, called state suits against prediction market platforms "really egregious." (The Block)
• He accused states of bringing criminal charges to "lock up" founders and CEOs offering products under a federal regime. (The Block)
• Roughly a dozen states and cities are disputing whether event contracts are illegal gambling or CFTC-regulated derivatives. (The Block)
• Thursday: DOJ and CFTC sued Arkansas AG Tim Griffin to block his action against Kalshi; Louisiana sued Kalshi, Polymarket, Robinhood and Coinbase. (The Block)
• Selig said he wants the jurisdiction question taken to the Supreme Court. (The Block)

The real-world read

Selig is an interested party, not a neutral referee: the CFTC is a direct litigant here — it co-signed the Arkansas suit the same day he spoke — so his "lock up founders" framing is advocacy for his own agency's position, and the "lawful products under a federal regime" characterization is precisely the point the states dispute. The quotes come from conference remarks relayed by The Block, not a filing or transcript; the underlying lawsuits are the primary record and weren't quoted directly. Note too what's unsaid: Selig cites no specific state criminal charge or named executive facing jail, and the gambling-versus-derivatives question he wants the Supreme Court to decide remains unresolved.

Opinion, and whose

The claim that states are "trying to lock up" founders, that the suits are "egregious," and that the CFTC holds "exclusive jurisdiction" are all Selig's characterizations. That the Supreme Court should settle the question is his stated preference, not a scheduled event — no case has been accepted there.

Sources

• The Block (Tier 2, reputable secondary), 2026-11-13 — reported Selig's Cantor Convergence remarks and the Thursday Arkansas and Louisiana lawsuits. Quotes are relayed from the conference, not a primary transcript or court filing.

Not financial or legal advice.