The CFTC confirmed talks with major US sports leagues as regulators expand oversight of prediction markets.
Prediction Markets News
US Commodity Futures Trading Commission (CFTC) Chairman Michael Selig confirmed on May 12 that the agency is in active talks with every major professional sports league in the country. Selig made the announcement at the annual FINRA conference in Washington, D.C., as federal regulators expand oversight of sports-related #predictionmarkets.
The CFTC signed its first formal data-sharing agreement with a professional sports organization in March 2026, entering a memorandum of understanding with Major League Baseball. Selig said the agency is now pursuing similar arrangements with all other major US leagues to monitor insider trading and market manipulation tied to event contracts.
Federally regulated prediction market platforms, including Kalshi and Polymarket, have moved deeper into sports contracts over the past year. That expansion has created jurisdictional conflicts with state gaming regulators. Selig said the CFTC has filed suit against approximately five or six states that attempted to block federally regulated event contracts, arguing that #derivatives listed on CFTC-regulated exchanges fall under federal authority rather than state gaming law.
Exchanges Serve as First Line of Defense, Selig Says
Selig described sports prediction contracts and traditional casino betting as "different products, parallel regimes." He pledged the agency would continue filing cases against states that challenge its jurisdiction.
The chairman addressed insider trading in prediction markets directly, noting the area is one that regulators have only recently begun to police. He cited a case on Kalshi involving an employee of YouTube creator MrBeast, who allegedly traded on nonpublic information tied to content releases. He also raised hypothetical sports scenarios, such as team staff trading ahead of games using nonpublic injury data, and said the exchanges themselves serve as the first line of defense given their Know Your Customer and Anti-Money Laundering processes.
The CFTC is also reviewing exchange-traded products and funds linked to prediction market strategies in coordination with the Securities and Exchange Commission (SEC). SEC chair Paul Atkins was scheduled to speak at the same FINRA conference on May 12.
The broader posture at the CFTC under the current administration reflects a shift toward treating predictionmarkets and crypto-linked financial products as legitimate, regulated asset classes. The agency's outreach to professional sports leagues signals that event contracts are now firmly within its enforcement mandate.
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