“Different products, parallel regimes,” he said, comparing sports prediction contracts with traditional casino betting.

The chairman also outlined how the agency is approaching insider trading in prediction markets, an area regulators have only recently begun confronting.

Selig cited a case policed by the platform Kalshi involving YouTube creator MrBeast in which an employee allegedly traded ahead of market-moving information tied to online content releases. He also described hypothetical sports-related scenarios, including trainers or team staff trading on nonpublic injury information before games.

The exchanges themselves remain the “first line of defense,” Selig said, because they conduct know-your-customer and anti-money laundering checks that can help identify suspicious activity.

The CFTC also expects prediction markets to spread into mainstream investment products.

Selig said regulators are reviewing exchange-traded products and funds linked to prediction-market strategies and are coordinating oversight with the Securities and Exchange Commission (SEC). SEC chair Paul Atkins is scheduled to speak at the conference later this afternoon.

Selig’s remarks signal a broader shift at the CFTC under the Trump administration, which has embraced prediction markets and crypto-linked financial products after years of regulatory resistance toward the sector.

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