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The CFTC supports Kalshi in the appeal case, arguing that regulatory authority over prediction markets belongs to the federal government.
ChainCatcher reports that, according to Cointelegraph, the U.S. Commodity Futures Trading Commission (CFTC) has filed an amicus brief with the Sixth Circuit Court of Appeals in the United States, supporting Kalshi’s appeal in the lawsuit against Ohio, and arguing that prediction markets should be under the jurisdiction of the CFTC.
The CFTC pointed out that Ohio’s previous demand for Kalshi to stop offering sports event contracts constitutes “overreach of jurisdiction.” The CFTC states that if state governments can restrict sports event contracts traded on designated contract markets (DCMs), their long-term regulatory authority over event contracts, swaps, and binary options markets could be affected. The outcome of this case will also impact prediction market platforms like Kalshi and Polymarket.