WASHINGTON, May 12, 2026 — The U.S. Commodity Futures Trading Commission said Tuesday it had filed an amicus brief in the U.S. Court of Appeals for the Sixth Circuit reaffirming the agency’s exclusive jurisdiction over prediction markets in ongoing litigation involving KalshiEx LLC.
The filing in KalshiEx LLC v. Matthew T. Schuler, et al., No. 26-3196 argues that Congress established a comprehensive federal regulatory structure for derivatives markets overseen by the CFTC and that the structure preempts state laws when applied to CFTC-regulated prediction markets, according to a statement published Tuesday by the agency.
CFTC Challenges District Court Interpretation
The commission said the filing forms part of a broader effort to defend federal oversight of prediction markets against what it described as continued state-level encroachment into areas regulated by the agency.
“The federal district court in Ohio took an improperly narrow view of the Commission’s jurisdiction, and we are asking the Court of Appeals to correct that error,” CFTC Chairman Michael S. Selig said in the statement.
“As I’ve said repeatedly, the CFTC will not allow overzealous state governments to undermine the agency’s longstanding authority over these markets,” Selig added.
Previous Actions Against State Regulators
The CFTC said it had previously filed lawsuits against Arizona, Connecticut, Illinois, New York and Wisconsin related to state regulation of CFTC-regulated prediction markets.
The commission also said it had secured a preliminary injunction in Arizona and previously submitted amicus briefs in the U.S. Court of Appeals for the Ninth Circuit and the Supreme Judicial Court of Massachusetts.
Federal Oversight Debate Continues
Prediction markets and event contracts have drawn increased regulatory attention in the United States as federal and state authorities continue to debate the scope of oversight applicable to emerging derivatives products and related trading platforms.
