CFTC backs Kalshi against state gambling enforcement

"The federal district court in Ohio took an improperly narrow view of the Commission's jurisdiction, and we are asking the Court of Appeals to correct that error. As I've said repeatedly, the CFTC will not allow overzealous state governments to undermine the agency's longstanding authority over these markets."

"Congress established the CFTC in 1974 specifically to avoid fragmented state oversight of commodities trading. According to the document, lawmakers concluded that inconsistent state laws had weakened national markets and created confusion for exchanges and trad"

"The filing argues that Congress already gave the CFTC sole authority over futures, swaps, and similar financial products traded on federally regulated exchanges. Today's amicus brief represents the @CFTC's continued effort to protect our jurisdiction over prediction markets from the ongoing campaign of state encroachment."

The CFTC asked the U.S. Court of Appeals for the Sixth Circuit to overturn an Ohio ruling in its dispute with Kalshi and state regulators. The agency argued that prediction markets should be supervised under federal authority because Congress granted the CFTC sole jurisdiction over futures, swaps, and similar financial products traded on federally regulated exchanges. Ohio officials had moved against Kalshi’s sports-related event contracts, claiming they violate state gambling restrictions, and Kalshi challenged the state’s authority in federal court. The CFTC said Congress created the agency in 1974 to prevent fragmented state oversight of commodities trading, which lawmakers believed weakened national markets and created confusion for exchanges and traders.

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