Gary Gensler Backs States in Fight Over Prediction Market Regulation
Former SEC and CFTC chair Gary Gensler filed an amicus brief in the Sixth Circuit backing Ohio and arguing that Dodd-Frank did not give the CFTC authority to legalize nationwide sports betting or override state gaming laws. He said the 2010 law was aimed at post-crisis swaps regulation, not wagering, and that Congress did not hide such a major policy shift in a statutory definition. The brief opposes Kalshi’s claim that federal law preempts state action against prediction markets tied to sports outcomes. The filing joins other amici supporting Ohio, including Native American tribes, tribal associations, the Indian Gaming Association, the American Gaming Association, Better Markets, and Utah’s attorney general. Gensler also criticized the CFTC’s proposal to allow sports-related contracts, saying gambling, addiction, and youth-harm concerns belong with the states. The dispute has sparked lawsuits from multiple states, while the CFTC and DOJ have defended federal jurisdiction.
