Former SEC Chair Gensler Files Court Brief Arguing Prediction Markets Aren’t Under CFTC Jurisdiction
Summary
- Former U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler has filed a brief arguing that prediction markets do not fall under the jurisdiction of the Commodity Futures Trading Commission (CFTC).
- Gensler argued that prediction markets should not be interpreted as derivatives used to evade gambling-related regulations imposed by U.S. state governments and should not fall within the CFTC’s regulatory scope.
- The case began after Kalshi took legal action against measures by Ohio, which had classified prediction markets as unlicensed betting, while the CFTC maintains that prediction markets qualify as derivatives.
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Former U.S. Securities and Exchange Commission Chair Gary Gensler has argued that prediction markets do not fall under the jurisdiction of the Commodity Futures Trading Commission.
BlockBeats reported on June 12 that Gensler recently filed an amicus brief in a U.S. court in connection with prediction markets. At the core of the filing is the argument that prediction markets should not be construed as derivatives that allow participants to evade state gambling regulations. BlockBeats said the document is tied to litigation between prediction-market platform Kalshi and the state of Ohio.
The case centers on whether prediction markets should be defined as derivatives subject to federal regulation. Gensler argued that they do not fall within the scope of derivatives and should not be regulated by the CFTC.
The lawsuit began after Kalshi challenged action by Ohio, which had characterized prediction markets as unlicensed betting. The CFTC, however, maintains that prediction markets qualify as derivatives.
JOON HYOUNG LEE
gilson@bloomingbit.ioCrypto Journalist based in Seoul
