Altcoins News

Story: CFTC Chair Selig Declares War on States Over Prediction Market Control

By Maheen Hernandez

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Federal regulators just escalated things. CFTC Chair Michael Selig dropped a bomb this week, warning states that their crackdown on prediction markets won't fly in federal court.

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Selig's move marks a pretty dramatic shift for the agency that once wanted to kill political betting entirely.

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The CFTC used to hunt down political prediction markets like they were some kind of plague. Polymarket got hit hard. Other platforms faced shutdowns.

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Utah Governor Spencer Cox fired back fast, questioning whether the CFTC even has authority over what he calls straight-up gambling.

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But the legal battlefield keeps expanding. Polymarket sued Massachusetts, claiming only the CFTC can regulate their markets.

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On February 17, 2026, Selig made his declaration right after the CFTC filed an amicus brief defending federal jurisdiction.

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Coinbase keeps insisting their prediction markets aren't gambling at all. They argue these platforms help users manage financial risks, not chase lucky breaks.

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Kalshi finds itself stuck in the middle too. The platform has followed CFTC rules from day one but now faces state allegations anyway.

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Massachusetts Attorney General Maura Healey doubled down on February 18, 2026, calling prediction markets "unregulated gambling" that puts residents at risk.

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Coinbase hired heavy-hitter attorney Lisa Monaco to handle their multi-state legal mess. Monaco's team is prepping for March 2026 hearings covering lawsuits from Connecticut,…

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Other platforms are watching nervously. Crypto.com and Kalshi know that decisions favoring federal jurisdiction could streamline operations and cut regulatory uncertainty.

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Massachusetts escalated further on February 19, 2026, when Healey announced expanded investigations into more platforms.

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Cox keeps hammering his message about protecting vulnerable populations from "exploitative practices.

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Kalshi co-founder Tarek Mansour addressed reporters on February 20, 2026, emphasizing their strict adherence to CFTC regulations.

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Brian Armstrong spoke at a New York financial conference on February 21, 2026, calling for unified regulatory approaches.

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