CFTC Reaffirms Exclusive Jurisdiction Over Prediction Markets in Massachusetts Supreme Judicial Court Filing

WASHINGTON - The Commodity Futures Trading Commission today filed an amicus brief in the Massachusetts Supreme Judicial Court confirming the CFTC's exclusive jurisdiction over the U.S. commodity derivatives markets, including event contract markets commonly referred to as prediction markets. The brief was filed in Commonwealth of Massachusetts v. KalshiEx LLC, No. SJC-13906.

The filing in Massachusetts comes as a part of the CFTC's broader effort to protect its jurisdiction over prediction markets from an ongoing campaign of state encroachment.

"Some states continue to pursue ever-escalating, illegal enforcement actions against CFTC-regulated exchanges, despite rulings from multiple courts halting those efforts," said Chairman Michael S. Selig. "Congress has entrusted the CFTC with the sole authority to regulate commodity derivatives markets, including prediction markets. To any state that seeks to nullify federal law and seize authority over these markets, I say again: we will see you in court."

The amicus brief outlines the history and structure of the Commodity Exchange Act and describes how the comprehensive scheme designed by Congress preempts state laws as applied to CFTC-regulated markets.

The CFTC has previously filed lawsuits against Arizona, Connecticut, Illinois, and New York, securing a temporary restraining order against state regulation of CFTC-regulated prediction markets in Arizona. The CFTC has also filed an amicus brief and argued that state laws are preempted before the U.S. Court of Appeals for the Ninth Circuit.