Only The Federal Government Has The Power To Regulate Prediction Markets: CFTC

• The CFTC filed a court brief claiming exclusive federal authority over prediction markets.

• The agency argues that event contracts are commodity derivatives under its jurisdiction.

• Several US states are challenging the federal stance, calling prediction markets unlicensed gambling.

The Commodity Futures Trading Commission (CFTC) said only the federal government has the authority to regulate prediction markets in the United States.

The agency filed an amicus brief in the US Court of Appeals for the Ninth Circuit to defend its control over event contract markets, often called prediction markets.

The filing comes in the case involving the North American Derivatives Exchange and the State of Nevada. The CFTC argued that commodity derivatives markets, including event contracts, fall under its exclusive jurisdiction.

According to the agency, state attempts to regula…

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