CME and CFTC clash over prediction market regulation

CME CEO Terry Duffy and CFTC Chair Michael Selig clashed over prediction market oversight, highlighting regulatory tensions and manipulation concerns, especially for crypto-related event contracts.

During a Commodity Futures Trading Commission (CFTC) Innovation Advisory Committee meeting in Washington, D.C., CME Group CEO Terry Duffy voiced strong concerns about the regulation and potential manipulation of prediction markets. Duffy criticized the self-certification process for new contracts, noting that around 2,500 products have been submitted since 2025 without objection, potentially allowing vulnerable contracts to slip through. He questioned the regulatory scrutiny of platforms like Kalshi and Polymarket, and even mocked the economic relevance of some prediction market contracts. In response, CFTC Chair Michael Selig pushed back, calling some of Duffy's statements "fake news" and clarifying that certain products mentioned were not listed in the U.S. The heated exchange underscored a growing divide between established financial exchanges and emerging tech-driven prediction market platforms, highlighting ongoing regulatory uncertainty, especially regarding event contracts involving crypto assets.