California, Minnesota AGs Say CFTC Unready for Prediction Market Gambling Risks
Updated
Updated · Bloomberg · Jun 18
California, Minnesota AGs Say CFTC Unready for Prediction Market Gambling Risks
2 articles · Updated · Bloomberg · Jun 18
Summary
California and Minnesota attorneys general said the CFTC is not equipped to manage gambling-linked harms in prediction markets, sharpening a challenge to the federal regulator’s push to claim oversight.
Keith Ellison said states are better prepared to address the social costs of gambling, including addiction, and to mitigate the risks tied to these markets.
The warning centers on whether prediction markets should be treated only as federally regulated financial products or also as gambling-like activity requiring state-level consumer protections.