Senator Elizabeth Warren (D-Mass.) released a scathing rebuke of the Product Futures Trading Commission (CFTC) on Wednesday, following Chairman Michael Selig‘s statement that the federal company would intervene in state-led claims to protect the “unique jurisdiction” of forecast markets.
Safeguarding State Sovereignty
Warren defined the relocation by the Donald Trump– selected chairman as a direct attack on the rights of private states to supervise wagering activities.
She argued that by protecting platforms like Kalshi and Crypto.com from regional enforcement, the federal government is efficiently legislating unlicensed betting under the guise of monetary development.
“ Trump‘s CFTC is attempting to strip states’ authority to control betting within their borders and secure Americans from getting swindled,” Warren specified in a sharp action on X.
The Senator’s remarks follow Chairman Selig’s video statement on Feb. 18, 2026, in which he validated the CFTC had actually submitted an amicus quick in federal court.
Selig argued that forecast markets– where users trade agreements on occasions varying from the Super Bowl to energy rates– are “derivatives, plain and basic,” and must not undergo a “patchwork of state betting laws.”
Issues Of Financial Instability
Beyond the jurisdictional fight, Warren raised the alarm concerning the wider financial dangers of permitting uncontrolled “occasion agreements” to thrive.
She prompted the commission to go back to its core required of oversight instead of helping with speculative wagering markets.
” The CFTC needs to concentrate on guaranteeing our derivatives markets do not explode the economy once again, not assisting corrupt political experts money in.”
A Growing Regulative Rift
As the CFTC prepares to see state chief law officers in court, the result of this fight will likely figure out whether forecast markets are dealt with as advanced monetary tools or merely another kind of betting.
Disclaimer: This material was partly produced with the assistance of AI tools and was evaluated and released by Benzinga editors.
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