Today, House Agriculture Ranking Member Angie Craig (MN-02) delivered the following opening statement at a Subcommittee on Commodity Markets, Digital Assets, and Rural Development hearing titled “Examining Customer Protections and Market Integrity in Sports Event Prediction Markets.” Watch the hearing here.

[As prepared for delivery.]

Thank you, Chairman Johnson and Ranking Member Davis, for leading this hearing on this most topical subject.

In less than two years, we have seen explosive growth in event-prediction market trading, most of it driven by contracts on sport-related events. We have also seen litigation over sports event contracts with states suing markets, markets suing states and the CFTC also weighing in with its own litigation. 

I think it is safe to say that among the witnesses here today, and even among members of the committee, we will hear a divergence of views on the question of sports prediction markets. However, one thing I think everyone here can agree on is the CFTC needs a fully appointed commission, additional resources and increased expert staffing to do the job effectively.

Unfortunately, I have serious doubts as to whether the agency has the capability to police these markets. Last year, after this administration’s DOGE efforts, the agency saw its staff reduced by 20 percent.  

That means the CFTC must try to protect consumers not only in these fast growing prediction markets, but also in the rapidly evolving digital asset industries with one-fifth less staff. If someone tries to tell me that in the seven months that Mr. Selig has been chairman that the agency has acquired all the expertise necessary to understand and surveil all these different events traded on prediction markets, including sports, frankly I wouldn’t believe them. 

And of course, the Republicans’ solution to all this is simple: cut the agency’s funding from its currently low levels, as indicated by their $10 million cut to the CFTC’s budget in their FY27 agriculture appropriations bill. This cut came despite the administration’s request for an increase in the agency’s current budget.

Just last year, we heard from farmers, ranchers, cooperatives and others that have traditionally relied on commodity markets, that stagnant or insufficient funding at the CFTC undermines market certainty and raises risks across the system. If we want safe markets – if we want innovation without exploitation, if we want risk‑management tools that serve all Americans – then we must give the CFTC the staff and the funding it needs to do its job.

Recently, Chairman Selig put forth his personal vision – since he is the only commissioner there – for how to impose some structure and parameters on prediction markets. While I recognize that the proposal contains some positive elements, it does not go far enough. I look forward to hearing the witnesses' views on this.

My primary interest in this space is protecting consumers and maintaining market integrity. These should not be partisan issues.

Again, I want to thank the subcommittee chairman and ranking member for conducting this hearing and I look forward to hearing from our witnesses. With that, Mr. Chairman, I yield back.