Back
Gary Gensler says CFTC lacks authority over sports prediction markets

Gary Gensler says CFTC lacks authority over sports prediction markets

The former SEC and CFTC chair backed Ohio in a Sixth Circuit amicus brief, arguing Dodd-Frank was aimed at post-2008 derivatives regulation rather than sports-event contracts offered by Kalshi.

Fact Check
Multiple independent sources dated June 12, 2026 confirm the core claim. CoinDesk confirms Gary Gensler, former SEC and CFTC chair, argued prediction markets don't override state regulations regarding sports contracts. Crypto.news confirms he filed an amicus brief supporting Ohio's challenge to Kalshi, contending sports bets are not swaps and Congress never intended federal oversight of sports betting. The odaily newsflash corroborates and cites CoinDesk. The only minor discrepancy is the court designation (crypto.news cites the Sixth Circuit), which is consistent with the 'Ohio appeal' framing in the claim.
    Reference: 123
Summary

Gary Gensler, the former SEC and CFTC chair, filed an amicus brief in the U.S. Sixth Circuit backing Ohio and arguing that Dodd-Frank did not authorize the CFTC to regulate sports-related prediction markets. He said the 2010 law was designed to oversee complex financial derivatives after the 2008 financial crisis, not to place sports betting under exclusive federal oversight, and argued sports-event contracts should not be treated as swaps in a way that would let them bypass state gambling regulation. The filing opposes current CFTC Chair Michael Selig and Kalshi in litigation over Ohio’s order requiring Kalshi to stop offering sports event contracts, after a court denied Kalshi’s request for a preliminary injunction.

Terms & Concepts
  • amicus brief: A filing by someone not directly involved in a case who offers legal arguments or expertise to the court.
  • swaps: Financial derivative contracts often used to hedge economic risks, a classification central to this legal dispute.
  • prediction markets: Platforms where users trade contracts tied to the outcome of future events such as elections or sports.