Better Markets Backs Tennessee Bid to Regulate Prediction Markets, Urging CFTC to Police $1 Trillion Commodities
Updated
Updated · Better Markets · May 26
Better Markets Backs Tennessee Bid to Regulate Prediction Markets, Urging CFTC to Police $1 Trillion Commodities
4 articles · Updated · Better Markets · May 26
Better Markets filed an amicus brief backing Tennessee’s authority to regulate Kalshi and similar prediction markets, arguing they function as illegal sportsbooks under state gaming laws.
The group said Congress never meant the CFTC to oversee nationwide gambling and urged the agency to return its focus to commodities and derivatives markets instead.
Dominick Freda said the brief cites harms from largely unregulated betting platforms, including insider trading, problem gambling and potential election corruption.
Better Markets framed the dispute as a test of federal-state boundaries, saying states should keep long-held power over gambling while the CFTC concentrates on markets tied to prices from gas to groceries.
With a federal agency and states at odds, who truly has the power to regulate this booming market?
Are prediction markets innovative financial tools or just high-tech sportsbooks masquerading as investments?