The Commodity Futures Trading Commission, the federal agency responsible for overseeing derivatives, has filed an amicus brief asserting its exclusive federal oversight of prediction markets in response to state lawsuits, said Chair Michael Selig in a video message released Tuesday.
According to Selig, Congress gave the CFTC broad power over commodity-based contracts, such as prediction markets, and this authority should not be challenged by states or other regulators.
The filing comes as federal agencies continue to debate oversight boundaries for platforms that allow users to wager on election outcomes and economic events.
Kalshi, Polymarket, and Crypto.com are three major names under fire as state regulators challenge their status as federally regulated prediction markets and accuse them of operating as unlicensed gambling platforms.
Kalshi is currently facing at least 19 lawsuits, but stands out as the only major US-regulated Designated Contract Market. The company has leaned on this federal status as a legal shield, arguing that state regulators have no authority over its operations under CFTC oversight.
Polymarket, which returned to the US in late 2025, is now under scrutiny from regulators in Tennessee, Nevada, and New York. The platform recently faced a class-action lawsuit in Manhattan alleging that it operated as a nationwide sportsbook in disguise.
Source: https://cryptobriefing.com/cftc-files-brief-defend-prediction-markets-authority/
