The U.S. Commodity Futures Trading Commission (CFTC) has filed an amicus curiae brief with the Massachusetts Supreme Judicial Court, asserting its exclusive jurisdiction over the U.S. commodities derivatives market, including prediction markets. This move is part of the case Commonwealth of Massachusetts v. KalshiEx LLC. CFTC Chair Michael S. Selig emphasized that Congress has granted the CFTC sole regulatory authority, warning states against attempts to override federal law.
The brief outlines the legislative history of the Commodity Exchange Act, reinforcing that federal authority takes precedence over state laws in related matters. The CFTC has previously taken legal action against several states, including Arizona, Connecticut, Illinois, and New York, to maintain its regulatory control over prediction markets.
CFTC Defends Federal Oversight of Prediction Markets in Massachusetts Court
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