CFTC Chair to Appeal to Supreme Court to Uphold Jurisdiction

Michael Selig, the chairman of the U.S. Commodity Futures Trading Commission (CFTC), stated that the CFTC has exclusive jurisdiction over event contracts and will advance related litigation to the Supreme Court if necessary to prevent states from suing exchanges regulated by the CFTC on the grounds of operating gambling without a license. Selig also discussed the proposed cryptocurrency regulatory framework by the CFTC, noting that several major cryptocurrency exchanges have registered with the CFTC due to their offering of perpetual contracts and other derivatives, and that after the new regulations are implemented, they can add spot trading on their platforms. Some newly entering market institutions, unwilling to apply for licenses in all 50 states individually, have also sought to register with the CFTC. For exchanges that currently do not offer margin, leverage, or financing trading, the framework adopts a voluntary participation mechanism.