The CFTC submitted an opinion to the Massachusetts Supreme Court, defending federal regulatory authority over prediction markets

The U.S. Commodity Futures Trading Commission (CFTC) today submitted an amicus brief to the Supreme Judicial Court of Massachusetts, reaffirming its exclusive jurisdiction over the U.S. commodity derivatives market (including prediction markets). This case involves Commonwealth of Massachusetts v. KalshiEx LLC (case number SJC-13906).

CFTC Chairman Michael S. Selig stated that Congress has authorized the CFTC to have sole regulatory authority over the commodity derivatives market and warned that any state attempting to override federal law "will see you in court." The brief details the legislative history and framework of the Commodity Exchange Act, clarifying that the federal regulatory system takes precedence over relevant state laws. Previously, the CFTC has filed lawsuits against Arizona, Connecticut, Illinois, and New York, successfully obtaining a temporary restraining order against Arizona to prevent it from exercising state jurisdiction over prediction markets regulated by the CFTC.