The Commodity Futures Trading Commission filed an amicus brief in the Massachusetts Supreme Judicial Court in Commonwealth of Massachusetts v. KalshiEx LLC, arguing that Congress granted the CFTC exclusive jurisdiction over U.S. commodity derivatives markets, including event contract markets commonly referred to as prediction markets. The filing positions state enforcement efforts against CFTC-regulated exchanges as preempted by federal law. The brief summarizes the history and structure of the Commodity Exchange Act and contends that its comprehensive regulatory scheme preempts state laws as applied to CFTC-regulated markets. The CFTC framed the submission as part of a broader pushback against what it described as escalating state enforcement actions, citing prior lawsuits against Arizona, Connecticut, Illinois, and New York, a temporary restraining order in Arizona blocking state regulation of CFTC-regulated prediction markets, and preemption arguments advanced in an amicus filing before the U.S. Court of Appeals for the Ninth Circuit.
Commodity Futures Trading Commission 2026-04-24
Commodity Futures Trading Commission files amicus brief asserting exclusive jurisdiction over prediction markets in Massachusetts Supreme Judicial Court
The Commodity Futures Trading Commission filed an amicus brief in the Massachusetts Supreme Judicial Court in Commonwealth of Massachusetts v. KalshiEx LLC, arguing that Congress granted it exclusive jurisdiction over U.S. commodity derivatives markets, including event contract prediction markets, and that state enforcement against CFTC-regulated exchanges is preempted by federal law. The brief outlines how the Commodity Exchange Act’s comprehensive framework preempts conflicting state laws and is part of a broader CFTC pushback against escalating state enforcement actions, including prior litigation in other jurisdictions.