Gensler Bolsters State Pushback on CFTC Prediction Market Authority
Former SEC and CFTC Chair Gary Gensler filed an amicus brief arguing that federal law does not grant the CFTC exclusive authority over prediction markets.
Summary
- Former SEC and CFTC Chair Gary Gensler filed an amicus brief arguing that federal law does not grant the CFTC exclusive authority over prediction markets.
- The CFTC sued New Mexico in June 2026 to block state gaming rules from applying to Kalshi prediction markets under the Commodity Exchange Act.
- Gensler states Congress never intended sports betting or prediction markets to fall under sole federal oversight.
Gary Gensler filed an amicus brief in support of state authority over prediction markets in June 2026. The move directly challenges the CFTC's lawsuit against New Mexico, the eighth state targeted by the federal regulator. Gensler, who previously led both the SEC and CFTC, asserts that Congress did not grant exclusive federal power in this area.
This filing heats up the clash.
Federal preemption claims now bump against state rules on sports betting and event contracts. Kalshi and similar platforms juggle oversight from both sides.
Context
The CFTC claims the Commodity Exchange Act hands it sole jurisdiction over prediction contracts on designated markets. The agency has sued several states already. New Mexico marks the latest battle.
Gensler pushes back hard.
He says historical intent kept sports betting outside full federal grip. States can still license or limit these markets.
Details
In the brief, Gensler says federal law gives the CFTC no power over prediction markets. Congress never meant to shield sports betting from state eyes. State roles fit old regulatory patterns.
The CFTC wants a court order.
It claims state laws can't touch CFTC-regulated platforms like Kalshi. Election and sports contracts sit at the center.
"Congress categorically did not intend to put sports betting under exclusive federal oversight."
, Gary Gensler (finance.yahoo.com)
The CFTC pushes for one national system. States can't change that. This has sparked fights elsewhere too.
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NEW: Former CFTC and SEC Chair Gary Gensler has filed an amicus brief arguing federal law does not give the CFTC authority to oversee ... (link)
Outlook
The New Mexico case will test federal power here. Gensler's brief will likely pop up in court papers. Everyone watches for clarity on state gaming rules versus CFTC control.
