SEC chair Gary Gensler argues states retain authority over gambling laws, challenging CFTC’s jurisdiction in prediction markets.
Gary Gensler, former CFTC and SEC chair, filed an amicus brief supporting states in their legal battle against the CFTC’s claim of exclusive federal jurisdiction over prediction markets. The brief argues Congress did not grant the CFTC authority over nationwide sports wagering under the Dodd-Frank Act, leaving state gaming laws intact.
The dispute centers on Kalshi’s appeal after a federal judge denied its request for a preliminary injunction against state cease-and-desist orders. Thirty Native American tribes and 11 tribal associations have also filed briefs backing Ohio in the Sixth Circuit case, escalating the regulatory conflict.
Gensler’s stance aligns with concerns over gambling and addiction, which he believes should be regulated at the state level. The outcome could reshape the prediction market industry’s legal framework and federal oversight.