CFTC submits an amicus brief to the Massachusetts Supreme Court defending federal regulation of prediction markets

Golden Finance reports that on April 25th, the U.S. Commodity Futures Trading Commission (CFTC) submitted an amicus brief to the Supreme Judicial Court of Massachusetts, reaffirming its exclusive jurisdiction over the U.S. commodity derivatives market (including prediction markets). This case involves Commonwealth of Massachusetts v. KalshiEx LLC (Case No. SJC-13906).
CFTC Chairman Michael S. Selig stated that Congress has authorized the CFTC to have sole regulatory authority over the commodity derivatives market 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, and successfully obtained a temporary restraining order against Arizona to prevent state-level jurisdiction over CFTC-regulated prediction markets.