CFTC Submits Brief to Massachusetts Supreme Judicial Court Defending Federal Regulatory Authority Over Prediction Markets

According to an announcement on the CFTC’s official website, the U.S. Commodity Futures Trading Commission (CFTC) filed an amicus curiae brief with the Massachusetts Supreme Judicial Court on April 24, reaffirming its exclusive jurisdiction over U.S. commodity derivatives markets—including prediction markets—in the case of Commonwealth of Massachusetts v. KalshiEx LLC (SJC-13906). CFTC Chairman Michael S. Selig stated that Congress has granted the CFTC sole regulatory authority over commodity derivatives markets and warned that any state attempting to override federal law “will see us in court.” The brief details the legislative history and framework of the Commodity Exchange Act, clarifying that the federal regulatory regime preempts state laws on related matters. Previously, the CFTC has filed lawsuits against Arizona, Connecticut, Illinois, and New York, and successfully obtained a temporary restraining order against Arizona, preventing it from asserting state-level jurisdiction over prediction markets regulated by the CFTC.