CFTC Welcomes Prediction Market CEOs to New Innovation Advisory Committee

The Commodity Futures Trading Commission (CFTC) is collaborating with some of the most influential names in the prediction market industry. This week, chairman Michael Selig unveiled the Innovation Advisory Committee. The new body will help the CFTC shape policy for emerging financial products, leveraging the expertise of executives, academics, and infrastructure leaders.

The New Committee Will Deliver Valuable Insights

Some of the 35 charter members include Shayne Coplan of Polymarket and Tarek Mansour of Kalshi, two of the most prominent figures in the prediction market industry. They will join established players from traditional finance and sports betting, including Christian Genetski of FanDuel and Jason Robins of DraftKings, as well as Nasdaq chief Adena Friedman and executives from blockchain firms.

The CFTC’s message is clear: event contracts, including those tied to sports outcomes, are now part of the authority’s mainstream policy. Selig noted that the committee would establish appropriate financial boundaries for a system reshaped by artificial intelligence, blockchain, and cloud infrastructure. Committee members will offer advice on regulating derivatives and commodity markets during constant technological innovation.

The Innovation Advisory Committee will play a critical role in advising the Commission on the commercial, economic, and practical considerations of emerging products, platforms, and business models in the financial markets.

Michael Selig, CFTC chairman

The inclusion of prediction market leaders comes at a sensitive moment. Selig recently stated that the CFTC  intends to assert its authority over sports-based event contracts, even if that leads to conflicts with state regulators. That stance has drawn criticism from lawmakers and gaming authorities who argue that all forms of sports wagering fall under state control and that prediction markets undermine existing regulatory safeguards.

Prediction Markets Remain Highly Contentious

Prediction platforms have expanded rapidly. Kalshi reported executing $1.2 billion in trades during the Super Bowl, a dramatic jump from the prior year. Contracts ranged from the game’s outcome to individual plays and virtually every aspect of the event, such as which song Bad Bunny would open with. At the same time, Nevada’s traditional sportsbook market has shown signs of stagnation, raising questions regarding the impact of prediction markets.

Opposition remains stiff. State regulators and tribal leaders have filed lawsuits challenging the legality of contracts tied to sports events, contending that they resemble gambling products more than hedging tools. A Massachusetts court recently restricted certain offerings by Kalshi, and officials in Nevada, Ohio, and New Jersey have raised similar concerns.

Skeptics fear that the CFTC’s advisory committee could become a sounding board and shield for prediction platforms. By bringing prediction market executives into formal dialogue with regulators and legacy financial institutions, the authority likely seeks to normalize the sector and assert federal oversight. Selig has indicated that the group will help chart a regulatory course for what he calls a new era in financial markets.