The Commodity Futures Trading Commission has filed an amicus brief with the Ninth Circuit Court of Appeals in support of Crypto.com, taking the position that prediction markets fall under the agency’s exclusive authority. The filing sharpens a growing conflict between federal commodities oversight and state gambling enforcement as prediction market products spread across the U.S.
The case centers on sports prediction contracts offered by Crypto.com. The Nevada Gaming Control Board treated those contracts as unlicensed gambling and moved to block them. Crypto.com argues the products are federally regulated derivatives instead. A district judge previously sided with Nevada, and the dispute is now before the appeals court.
CFTC defends its own jurisdiction in court
According to Crypto In America, the CFTC’s brief argues that federal commodities law preempts state gambling rules in this area. Chairman Michael Selig also addressed the issue in a video posted on X, saying the agency would defend its authority in court. The filing is not only support for Crypto.com’s legal position; it is also a direct defense of the CFTC’s regulatory reach.
Former CFTC Chairman Chris Giancarlo submitted a separate brief backing the same view. He pointed to state actions in Nevada, New York, and Massachusetts, suggesting the clash between state regulators and federal oversight is widening as more prediction products enter the market.
Commercial interest keeps growing
Even with the legal fight intensifying, prediction markets continue to gain business traction. Kalshi and Polymarket have landed partnerships with major brands. Coinbase, Gemini, Crypto.com, and Robinhood have also explored comparable offerings. On Wednesday, Bitwise filed with the SEC to launch prediction market ETFs tied to future U.S. elections.
That expansion has drawn political criticism. Utah Governor Spencer Cox wrote on X that prediction markets are gambling. Senator Elizabeth Warren also pushed back on the CFTC’s stance and warned against restricting state authority.
Parallel federal talks continue on stablecoin yield
At the same time, broader federal crypto policy talks are still moving. Sources told Crypto In America that the White House may host another meeting on Thursday focused on stablecoin yield, bringing together banks and crypto firms.
The proposal under review could permit payment stablecoins to generate yield through limited DeFi activity. Banking sources described the idea as constructive, while also saying concerns about yield protections have not been resolved.