The US Commodity Futures Trading Commission filed an amicus brief with the US Court of Appeals for the Ninth Circuit arguing that it has exclusive jurisdiction over US commodity derivatives markets, including event contract markets commonly referred to as prediction markets. The brief was filed in North American Derivatives Exchange, Inc. et al v. The State of Nevada on relation of the Nevada Gaming Control Board et al. The brief sets out the legal history supporting the CFTC’s exclusive jurisdiction over all commodity derivatives markets and contends that states and other federal entities lack authority to further regulate markets within that remit, warning that such efforts would have destabilizing economic effects. It cites the CFTC’s 1992 recognition of event contracts through the Iowa Electronic Markets and notes that after the 2008 financial crisis Congress expressly granted the CFTC comprehensive authority over contracts based on a commodity, which is broadly defined in statute; Chairman Michael S. Selig also framed recent litigation as an attempt to limit access to event contracts and undermine the CFTC’s sole regulatory jurisdiction.
Commodity Futures Trading Commission 2026-02-17
US Commodity Futures Trading Commission files Ninth Circuit amicus brief asserting exclusive jurisdiction over prediction markets
The US Commodity Futures Trading Commission (CFTC) filed an amicus brief with the US Court of Appeals for the Ninth Circuit, asserting exclusive jurisdiction over US commodity derivatives markets, including prediction markets. In North American Derivatives Exchange, Inc. et al v. The State of Nevada, the CFTC argues that state and federal entities lack authority to regulate these markets, warning of potential destabilizing economic effects. The CFTC cites its historical recognition of event contracts and Congress's post-2008 financial crisis grant of comprehensive authority over commodity-based contracts.