CFTC Commissioner Selig Criticizes State Push for Criminal Cases Against Prediction-Market Executives
JH Kim
Summary
- A CFTC commissioner criticized moves by state governments to pursue criminal penalties against operators of prediction-market platforms.
- He said some states were effectively trying to jail founders and chief executive officers (CEOs) of prediction-market platforms.
- He said whether prediction-market contracts qualify as gambling or derivatives should be judged on substantive grounds, and that the debate should not lead to prison sentences.
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Michael Selig, a commissioner at the US Commodity Futures Trading Commission, criticized efforts by state governments to pursue criminal penalties against operators of prediction-market platforms overseen by the federal government.
The Block reported on November 13 that, speaking at the Cantor conference, Selig said some states were effectively trying to jail founders and chief executive officers of prediction-market platforms.
He said whether prediction-market contracts constitute gambling or derivatives should be determined on the basis of substance.
He added that debate over the legal nature of those contracts should not create a risk of prison sentences.
JH Kim
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