US senators push to end CFTC ‘assault’ on state oversight of prediction markets
Seventeen Democratic senators are urging Senate appropriators to stop the CFTC from using federal funds to fight state regulators over prediction markets. In a letter led by Richard Blumenthal and Jeff Merkley, they asked lawmakers to block spending on CFTC legal action supporting Chair Michael Selig’s claim that the agency has exclusive jurisdiction over event contracts on prediction platforms. The senators argue the litigation undermines state consumer protections and could fuel a “race-to-the-bottom” in gambling. The CFTC has been involved in disputes with state gaming authorities in several states, including Connecticut, Illinois, Arizona, Kentucky, Wisconsin, New York, Minnesota, Rhode Island and New Mexico. Companies such as Kalshi and Polymarket have also sued state authorities in support of the CFTC’s position. Some experts think the conflict could eventually reach the Supreme Court, especially given prior rulings affirming state authority over sports betting. The fight is unfolding as the Senate weighs the CLARITY Act and as Selig runs the CFTC without a full commission.
