Published on: February 16, 2026, at 09:39h.
Updated on: February 16, 2026, at 09:39h.
- Senate Democrats are urging CFTC Chair Michael Selig to rethink new regulations concerning sports event contracts from the independent federal agency
- Selig seems determined to strengthen prediction markets’ capabilities for trading contracts based on sports outcomes
On Friday, Senate Democrats sent a letter to the head of the United States Commodity Futures Trading Commission (CFTC), asking him to retract his endorsement of prediction markets that facilitate trading contracts related to sporting events.
Earlier this month, under Chairman Michael Selig’s direction, the CFTC retracted a proposed rule that included sporting events under the definition of “gaming.”
Prediction markets serve as derivative trading platforms that allow the buying and selling of shares in binary markets and yes/no contracts. For over 15 years, CFTC Regulation 40.11 has prohibited such markets from offering event contracts that mention “terrorism, assassination, war, gaming, or any unlawful activities under state or federal law, or any activities deemed contrary to public interest by the CFTC.”
Selig, who was appointed by President Donald Trump in October and inaugurated on December 22, aims to utilize his term to modify the regulations governing prediction markets, thereby permitting CFTC-regulated platforms to offer sports-related contracts. A coalition of 23 Senate Democrats is urging him to reconsider this approach.
Letter from Democratic Senators to CFTC
In a letter addressed to Selig, signed by 23 Senate Democrats—including Senators Catherine Cortez Masto and Jacky Rosen from Nevada—the group implores that the CFTC chief maintain the long-standing prohibition on gaming and sports event contracts.
“It appears you are directing the Commission in a way that contradicts the objectives of the Commodity Exchange Act, state laws, and tribal sovereignty,” the senators remarked.
“If the Commission moves forward with rulemaking on event contracts, as you’ve indicated, we request that those regulations adhere to existing statutes and reiterate that contracts related to gaming (including sports), war, terrorism, assassination, or other specified activities are prohibited under the Commodity Exchange Act, as Congress has made its intent clear that these activities are ‘contrary to the public interest,’” the letter continued.
Senate Democrats are also requesting that Selig refrain from involving the CFTC in ongoing legal cases regarding prediction markets tied to the previously mentioned activities.
Notable signatories of the letter, alongside Cortez Masto and Rosen, include Senators Adam Schiff (California), Richard Blumenthal (Connecticut), Amy Klobuchar (Minnesota), and Cory Booker (New Jersey).
‘Implications for the Real World’
Senate Democrats argue that the CFTC’s movement toward establishing a more transparent regulatory framework for enabling prediction markets to handle sports contracts would carry “real-world implications.”
“Prediction market platforms are currently offering contracts resembling sportsbook bets, and in some instances, contracts associated with war and armed conflict. These products bypass state and tribal consumer protections, generate no public revenue, and destabilize sovereign regulatory frameworks,” the letter asserts.
Experts in the strictly regulated gaming sector harbor concerns that the CFTC’s potential relaxation of its banned contract definitions may lead prediction markets to engage in casino-related products, including event contracts based on outcomes of roulette spins or the success of a slot machine play.
The Trump Media and Technology Group, parent company of Truth Social, is reportedly preparing to launch Truth Predict, a prediction market set to offer contracts pertaining to sports and politics.