44 State Attorneys General Challenge CFTC's Authority Over Sports-Related Prediction Markets
Attorneys general from 44 U.S. states have written to the Commodity Futures Trading Commission (CFTC), asserting that it lacks authority to regulate sports-related event contracts on prediction market platforms. The letter was submitted as part of a public comment period for the CFTC's first proposed rule on regulating these markets, which ended Monday night. States argue the proposal exceeds federal statutory powers and infringes upon their jurisdiction over gambling activities. The dispute centers around whether such contracts are derivatives (under CFTC oversight) or sports betting (regulated by states). The issue has intensified as prediction market volumes surged last year, especially with platforms offering bets on major events like the 2026 FIFA World Cup. The CFTC is currently in litigation with nine states over this jurisdictional conflict. The letter also highlights concerns from industry players such as CME Group and Rothera, who have differing views on how to define
Topics: CFTC_regulation prediction_markets state_attorneys_general