Gary Gensler, former chair of both the Commodity Futures Trading Commission and the Securities and Exchange Commission, filed an amicus brief Thursday with the U.S. Court of Appeals for the Sixth Circuit. The brief rejects claims that the CFTC has jurisdiction over prediction markets and event contracts tied to sporting events. Gensler argued the Dodd-Frank Act, the financial reform law enacted after the 2008 financial crisis, did not grant the agency authority over sports wagering. His position directly contradicts that of current CFTC Chair Michael Selig and prediction-market platform Kalshi, both of which maintain that such contracts fall under federal jurisdiction. The brief was filed in a case involving Kalshi, which sued Ohio in October 2025 after the Ohio Casino Control Commission ordered the platform to stop offering sports-related event contracts to its residents.
Gensler Argues Dodd-Frank Act Did Not Grant CFTC Sports Betting Authority
In the brief, Gensler stated: "If Dodd-Frank had preempted the states on sports betting, it would have been one of the biggest stories about Dodd-Frank at the time. But nobody ever mentioned it." Gensler previously served as chair of the SEC from 2021 to 2025, during which he asserted that most cryptocurrencies were securities and brought multiple cases against big-name crypto firms, including Coinbase and Kraken. Before that, he was chair of the CFTC from 2009 to 2014, where he implemented Dodd-Frank rules.
Kalshi Sued Ohio in October 2025 Over Sports Event Contract Ban
Kalshi sued the state of Ohio in October 2025 after the Ohio Casino Control Commission ordered the platform to stop offering sports-related event contracts to its residents. A judge denied Kalshi's request for a preliminary injunction. The CFTC has backed Kalshi in that fight, arguing that Ohio is overstepping its jurisdiction. Over the past year, CFTC Chair Michael Selig has looked to assert jurisdiction by proposing rules for prediction markets, arguing that the CFTC has a broad statute despite objections from states that say platforms are violating local gaming and gambling laws, particularly related to sports-related bets. The agency has sued several states in its fight to assert its oversight over prediction markets.
CFTC Proposed Broad Prediction Market Rules This Past Week
This past week, the CFTC proposed broad rulemaking for the burgeoning prediction markets that would still allow overall support for sports betting, despite opposition from state regulators. However, bets on terrorism, assassinations and war would be more limited under the proposal.
Gensler Criticized CFTC Funding and Oversight Capacity
Gensler also criticized the CFTC's ability to oversee prediction markets. The CFTC's sister agency, the SEC, has six times the number of staff as the CFTC. Former CFTC Chair Rostin Behnam has called for more funding at the agency, as well as President Donald Trump's previous pick to run the agency, Brian Quintenz. In the brief, Gensler said the CFTC did not ask for funding to regulate sports betting, "and it lacks the experience to do so."
FAQ
What did Gary Gensler argue in the amicus brief filed Thursday?
Gary Gensler argued that the Dodd-Frank Act did not grant the CFTC authority over sports wagering, contradicting claims made by current CFTC Chair Michael Selig and prediction-market platform Kalshi that such contracts fall under federal jurisdiction.
Why did Kalshi sue Ohio in October 2025?
Kalshi sued Ohio in October 2025 after the Ohio Casino Control Commission ordered the platform to stop offering sports-related event contracts to its residents. A judge denied Kalshi's request for a preliminary injunction, while the CFTC backed Kalshi's position that Ohio is overstepping its jurisdiction.
What did the CFTC propose this past week regarding prediction markets?
This past week, the CFTC proposed broad rulemaking for prediction markets that would allow overall support for sports betting despite opposition from state regulators, though bets on terrorism, assassinations and war would be more limited.
