Gensler Submits Court Brief Opposing Prediction Markets as Exempt from State Gambling Regulations

According to BlockBeats, former SEC Chair Gary Gensler filed a court brief today, June 12, arguing that prediction markets should not be interpreted under federal law as financial derivatives exempt from state gambling oversight.

The brief, submitted to the U.S. Sixth Circuit Court of Appeals, addresses litigation between prediction market platform Kalshi and Ohio. The dispute centers on whether sports event contracts qualify as federally regulated swaps or constitute state-level gambling activities. Gensler stated that Congress did not include sports entertainment in the swap definition under the Dodd-Frank Act, and such contracts typically lack economic risk-hedging characteristics, thus falling outside CFTC jurisdiction.