Attorneys general from 44 U.S. states sent a letter to the Commodity Futures Trading Commission, arguing that the agency does not have authority over sports-related event contracts listed on prediction market platforms. The letter said the CFTC’s first proposed rule on prediction market oversight goes beyond its statutory powers, conflicts with the Constitution, and is arbitrary and capricious. It also said sports betting should not be traded on designated contract markets and should instead remain under state law. Attorneys general from Florida, Georgia, New Hampshire, Missouri, and Texas did not sign the letter. The development centers on how sports-related event contracts should be regulated and whether that authority belongs to federal commodities regulators or the states.
Attorneys general from 44 U.S. states sent a letter on Monday to the Commodity Futures Trading Commission, saying the agency lacks authority to regulate sports-related event contracts on prediction market platforms.
The letter said the CFTC’s first proposed rule on prediction market oversight exceeds its statutory authority, conflicts with the Constitution, and is arbitrary and capricious. It called for the rule to be redrafted.
The attorneys general also said sports betting should not be traded on designated contract markets and should instead be governed by state law.
Attorneys general from Florida, Georgia, New Hampshire, Missouri, and Texas did not sign the letter.
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