Washington, Feb. 17, 2026 — The U.S. Commodity Futures Trading Commission filed an amicus curiae brief in the U.S. Court of Appeals for the Ninth Circuit explaining that Congress granted the Commission exclusive jurisdiction over commodity derivatives markets under the Commodity Exchange Act, including event contracts commonly referred to as prediction markets, according to a CFTC press release.
The filing was made in North American Derivatives Exchange, Inc. et al. v. The State of Nevada, on relation of the Nevada Gaming Control Board, et al.
CFTC position on exclusive jurisdiction
In its brief, the Commission states that Congress granted the CFTC exclusive jurisdiction over commodity derivatives markets under the Commodity Exchange Act. The agency states that event contracts fall within that statutory framework and are subject to federal oversight by the Commission.
According to the CFTC, courts and Congress have affirmed the Commission’s exclusive authority over such markets. The brief states that efforts by states to regulate or prohibit trading activity on CFTC-regulated exchanges are inconsistent with the Commodity Exchange Act’s grant of exclusive federal jurisdiction.
The Commission further states that states and other federal entities do not have authority to impose additional regulation on markets within the CFTC’s exclusive jurisdiction and that such efforts would have destabilizing economic effects. The agency also states that the Commodity Exchange Act is designed to account for innovation in financial markets.
Chairman statement
CFTC Chairman Michael S. Selig said in a statement accompanying the filing that certain CFTC-registered exchanges have faced legal challenges related to access to event contracts. He stated that event contracts allow businesses and individuals to hedge event-driven risks, manage portfolio exposure, and provide information about future outcomes.
The Chairman added that the Commission filed the amicus brief to protect the federal regulatory framework governing derivatives markets.
Background on event contracts
The Commission noted that it recognized event contracts in 1992 in connection with the Iowa Electronic Markets, a futures market at the University of Iowa that offered contracts tied to events such as presidential elections and corporate earnings. Following the 2008 financial crisis, Congress expanded the CFTC’s authority over contracts based on commodities, reinforcing the statutory framework cited in the brief.
The matter is pending before the Ninth Circuit.
