CFTC Submits Amicus Brief to Massachusetts Supreme Court Defending Federal Oversight of Prediction Markets

On April 25, the U.S. Commodity Futures Trading Commission (CFTC) submitted an amicus brief to the Massachusetts Supreme Judicial Court, reaffirming its exclusive jurisdiction over the U.S. commodity derivatives market, including prediction markets, in the case of Commonwealth of Massachusetts v. KalshiEx LLC (Case No. SJC-13906). CFTC Chairman 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, clarifying that the federal regulatory system takes precedence over relevant state laws. Previously, the CFTC has filed lawsuits against Arizona, Connecticut, Illinois, and New York, successfully obtaining a temporary restraining order against Arizona to prevent it from exercising state jurisdiction over prediction markets regulated by the CFTC.