CFTC Files Amicus Brief with Massachusetts Supreme Judicial Court, Defending Federal Authority Over Prediction Markets

Gate News message, April 25 — The U.S. Commodity Futures Trading Commission (CFTC) filed an amicus brief today with the Massachusetts Supreme Judicial Court, asserting its exclusive federal jurisdiction over commodity derivatives markets, including prediction markets. The case, Commonwealth of Massachusetts v. KalshiEx LLC (Case No. SJC-13906), centers on whether states can regulate prediction market platforms.

CFTC Chair Michael S. Selig stated that Congress has granted the CFTC sole regulatory authority over commodity derivatives markets and warned that any state attempting to override federal law will “see us in court.” The brief details the legislative history and framework of the Commodity Exchange Act, establishing that the federal regulatory system takes precedence over state-level statutes.

The CFTC has previously filed lawsuits against Arizona, Connecticut, Illinois, and New York, and successfully obtained a temporary restraining order against Arizona, preventing the state from exercising jurisdiction over CFTC-regulated prediction markets.