CFTC chair nominee Michael Selig told a Senate committee on 19 November 2025 that he would look to court decisions for guidance on sports event contracts. The committee advanced his nomination by a 12-11 vote the following day, sending it to the full Senate.
Selig’s approach leaves the CFTC’s potential treatment of sports event contracts unresolved pending court guidance.
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Reportedly, Two federal appeals courts disagree on whether sports event contracts constitute bets. Three petitions are before the Supreme Court as Kalshi continues to record trading highs.
US President Donald Trump selected Michael Selig, currently chief counsel for the CFTC’s crypto task force, to lead the commission, according to the report. Selig and David Sacks confirmed the selection in separate posts; the source describes it as a nomination and does not report Senate confirmation.
CFTC chair Michael Selig said he directed staff to withdraw a proposed rulemaking that would have prohibited political and sports event contracts, and an advisory cautioning firms against offering sports contracts in states with ongoing litigation. He said the commission would defend its authority over event contracts in federal and state court cases.
North American Derivatives Exchange, which operates Crypto.com's OG prediction market, and Ludlow Exchange, Novig's operator, filed separate lawsuits on 16 October challenging Missouri's 21-year age minimum and 10% tax on sports event contracts. Both argue that federal commodities law gives the CFTC authority over their contracts, pre-empting state gambling rules, after a 30-day compliance period following cease-and-desist notices expired. Missouri Attorney General Catherine Hanaway's office maintains that labelling a sports bet an event contract does not remove it from state law.
North American Derivatives Exchange, which operates Crypto.com's OG prediction-market platform, and Ludlow Exchange, the operator behind Novig, filed separate lawsuits on 16 October challenging Missouri's sports event contract rules. The filings followed the expiry of a 30-day compliance period set out in cease-and-desist notices. Both companies argue that federal commodities law gives the Commodity Futures Trading Commission authority over their contracts, putting them outside Missouri's gambling requirements.
Underdog filed a federal lawsuit against Connecticut officials after the state Department of Consumer Protection ordered it and eight other companies to stop offering or advertising sports-event contracts and let users withdraw existing funds. The company asked the court to block state enforcement, arguing that federal law gives the Commodity Futures Trading Commission authority over its event contracts; Connecticut officials say the contracts breach state gaming rules.