CFTC nominee Selig avoids senators’ grilling, keeping sports betting markets in legal limbo
Throughout a tense listening to of the Senate Agriculture Committee on Wednesday (Nov. 19), Michael Selig, President Donald Trump’s decide to steer the Commodity Futures Buying and selling Fee (CFTC), repeatedly prevented taking a transparent stance on sports-related prediction markets. Lawmakers from each events pressed him immediately on whether or not these markets ought to be thought-about unlawful playing, however he apparently dodged the questions every time.
By not giving a direct reply, the Chief Counsel of the US Securities and Alternate Fee’s Crypto Process Pressure basically left the present regulatory grey space untouched, which occurs to be the identical grey space forecasting platform they’ve been working on. And that did not sit effectively with senators, who made their frustration clear because the listening to continued.
Selig avoids answering questions within the prediction markets
Early on, Democratic Sen. Tina Smith famous that for the reason that Supreme Courtroom’s 2018 ruling, states have had the authority to legalize sports activities betting. As she famous, folks in Minnesota are already putting bets by means of what she known as “so-called prediction market platforms.”
CFTC Chairman nominee Mike Selig solutions a query concerning the futures markets he would oversee. Referred to the courts. pic.twitter.com/tX43bHCi6c
— Fairplaygov (@fairplaygov) November 19, 2025
She argued that these firms are working on tribal land with out tribal oversight and stated the distinction between sports activities betting and occasion contracts could also be “a semantic distinction with out an precise sensible distinction.” Smith famous that “present CFTC rules clearly prohibit gaming-related occasion contracts” and requested Selig if he would implement that ban.
Nevertheless, Selig refused to make a dedication. He responded that “these are complicated points by way of the interpretation of what constitutes gaming” and that he “will abide by the legislation and comply with what the court docket choices inform me to comply with.” Selig’s response echoed a theme he caught with all through the listening to. Relatively than viewing the problem as one thing for the company to repair, he framed it as a query for the courts to determine.
Smith challenged this method, noting that the legislation prohibiting gaming contracts is “very obscure”. However Selig did not transfer. Lawmakers could have anticipated some cautious wording, however his degree of evasiveness stood out.
Latest sports activities playing scandals deal with betting conduct
“With over half of the nation’s high legislation enforcement officers saying these contracts violate state legal guidelines that we’re , it is simply disappointing that the CFTC hasn’t acted, and I am going to depart that to be my actual query for you after my statements.” – Senator Cory Booker
Senator Cory Booker then shifted the main target to the integrity of the game. He introduced up latest FBI indictments involving skilled athletes accused of game-fixing for revenue and said that it was the regulated sports activities books that flagged the conduct. His concern was that prediction markets wouldn’t have the identical protections. Booker reminded the chamber that CFTC guidelines require contracts to guard in opposition to manipulation and warned that prediction markets threat changing into a again door for betting with out the accountability that licensed sportsbooks are required to take care of.
As soon as once more, Selig stated solely that the courts will determine whether or not these are gaming contracts. He added that if markets are traded legally, the CFTC’s function could be to verify they aren’t manipulated. Booker pushed him to say whether or not he would shut down the platforms if courts dominated they violated state playing legal guidelines. Selig reiterated that he would comply with the courts’ lead.
If sports activities occasion contracts are self-certified underneath CFTC guidelines, it’s vital that they not be manipulated, Selig stated.
– Lydia Beyoud (@ElleBeyoud) November 19, 2025
The backwards and forwards made it clear that lawmakers have been in search of a regulator that will truly regulate. Selig repeatedly signaled that he would anticipate another person to make the decision.
Senator Elissa Slotkin of Michigan talked concerning the financial significance and regulatory expectations in her state, which she described as “the No. 2 on-line on line casino and sports activities betting state.” She requested if sporting occasion contracts ought to be listed. Selig stated it was “in the end a query for the courts.”
“As the top of an company, I’ll at all times look to the views of the courts and Congress, because the Supreme Courtroom stated within the Loper Shiny resolution. You understand, company deference is proscribed. Now we have to look to the courts.” – Michael Selig, nominated for CFTC chairman
Slotkin then raised the problem of potential political strain by noting President Trump’s latest announcement of a brand new platform known as Fact Predict, which might help occasion contracts. She requested Selig immediately how he would reply if Trump personally sought a regulatory exemption.
Selig responded that he would “at all times uphold the legislation” and deal with every software the identical as every other. Slotkin warned him to be “very cautious about exceptions and the notion of bribery.” Her line of questioning mirrored broader issues, notably amongst Democrats, that the Trump administration could attempt to affect federal regulation of those markets for political or monetary achieve.
Definition of the sport
Rep. Adam Schiff took a special tack than his colleagues, asking Selig if putting a guess on a Payments vs. Texans recreation by means of Kalshi would rely as a recreation. Selig did not reply. Schiff then tried a less complicated model: what if the identical guess have been positioned in a on line casino, would it not be playing? Once more, no response. Pushing it even additional, Schiff requested the extra fundamental model of the query that if he and Selig made a private guess on the end result of the sport, would it not be playing? Nevertheless, Selig refused to say and as soon as once more pointed to the courts.
At one level, Schiff requested if he ought to perceive that Selig is “a clean slate” with no pre-existing opinion about whether or not betting on a recreation constitutes playing. Selig stated sure and that he would enter with out prejudice to the case.
Schiff’s disillusionment led to a deeper concern with Selig’s method. By refusing to simply accept even essentially the most fundamental definition of playing, Selig was avoiding hypotheses, in addition to indicating that he meant to go away the entire query open. The keep advantages prediction markets by maintaining issues obscure, permitting them to proceed to function as authorized battles play out. It additionally means the CFTC is unlikely to take any enforcement motion except a court docket forces its hand.
Senator Amy Klobuchar closed the listening to by elevating issues about assets. She questioned whether or not the CFTC has the workers and experience wanted to supervise a fast-growing marketplace for event-based contracts. Selig stated he took the matter significantly and would assess the company’s wants if confirmed. Her feedback pointed to a attainable future debate in Congress about whether or not the CFTC wants extra funding to do its job successfully.
The principle takeaway from the session was clear. Selig dodged any key questions concerning the prediction markets. He wouldn’t outline playing. He wouldn’t say whether or not the prevailing guidelines ought to apply. He wouldn’t make clear whether or not state playing legal guidelines apply. And he wouldn’t share his view on whether or not betting on sports activities outcomes counts as playing. As a substitute, he leaned closely on the concept that these are authorized questions for the courts to determine, not for the company created by Congress to control the derivatives markets.
Featured Picture: US Committee on Agriculture, Diet, and Forestry
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