CFTC Asserts Exclusive Federal Authority Over Prediction Markets Amid State Challenges

The U.S. Commodity Futures Trading Commission (CFTC) has escalated its legal battle with state regulators by filing an amicus brief asserting exclusive federal authority over prediction markets. The brief, submitted to the U.S. Court of Appeals for the Ninth Circuit, supports Crypto.com in its appeal against Nevada's attempt to regulate sports-event contracts under state gaming laws.

CFTC Chair Michael Selig issued a stark warning to states challenging the agency's jurisdiction: "Those who oppose our authority will be met in court." The MOVE comes as 23 U.S. senators urged Selig to refrain from intervening in pending litigation involving prediction markets, highlighting the growing tension between federal and state regulators.

Polymarket has already sued Massachusetts over similar regulatory overreach, while Utah's governor has branded prediction markets as gambling and vowed to fight them in court. The CFTC's aggressive stance signals a pivotal moment for the future of prediction markets and their classification under federal law.