According to Odaily, citing CoinDesk, former CFTC and SEC Chair Gary Gensler has filed an amicus brief with an appeals court concerning the regulatory authority over sports-related prediction markets. In the filing, Gensler argues that federal law does not grant his former agency, the CFTC, the power to regulate markets tied to sports predictions.
Several other entities have also submitted similar amicus briefs to the court. Those filings state that sports-related prediction markets infringe on state and tribal regulatory rules. The dispute centers on whether these markets should be overseen under state-level frameworks or handled at the federal level through the CFTC.
Courts in multiple parts of the United States are currently reviewing the question of how sports-related prediction markets should be regulated. The decisions in these cases involve not only the boundaries of CFTC authority, but also tax collection and other regulatory matters. The proceedings place the classification of sports prediction markets within the U.S. regulatory system before the courts.