CFTC faces challenge from 44 states over prediction market rule

44 state attorneys general have urged the U.S. Commodity Futures Trading Commission to withdraw and rewrite its proposed prediction market rule, arguing that it exceeds the agency’s authority and intrudes into an area traditionally regulated by states. Summary Attorneys general from 44 states have urged the CFTC to withdraw and rewrite its proposed prediction market rule. The coalition argued that regulating sports betting has traditionally been a state responsibility, not a federal one. The filing adds pressure as courts continue issuing conflicting rulings on sports prediction markets across the United States. According to a letter submitted Monday by attorneys general from 44 states, led by Ohio Attorney General Andy Wilson, the CFTC’s proposed framework for sports-related prediction markets extends beyond the authority granted under the Commodity Exchange Act and should be replaced with a new rule consistent with federal law and the U.S. Constitution. The filing was submitted as the public comment period on the agency’s proposed amendments to Rule 40.11 came to a close, adding another challenge to the CFTC’s effort to establish a federal framework for event contracts tied to ga...