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CFTC Moves to Block State Control of Prediction Markets With Ninth Circuit Filing

Chair Michael Selig vows to defend exclusive federal oversight in court after a wave of state gambling actions against major platforms.

Overview

  • The CFTC filed an amicus brief in the Ninth Circuit supporting Crypto.com’s appeal, arguing that event contracts are within the agency’s exclusive authority under federal law.
  • Michael Selig warned state regulators that the commission will litigate to protect its jurisdiction, saying in a video statement, “We will see you in court.”
  • State crackdowns and lawsuits continue, including a Nevada federal order last November temporarily barring Kalshi, as officials such as Utah Gov. Spencer Cox argue these platforms are unlicensed gambling.
  • Under Selig, the CFTC has reversed earlier proposals that would have banned political and sports event contracts and has directed staff to draft new rules tailored to prediction markets.
  • Market‑integrity scrutiny is rising in parallel, with the SDNY’s U.S. attorney forecasting fraud prosecutions and the CFTC signaling a focus on insider trading and manipulation.