Former SEC, CFTC Chair Gary Gensler argues that prediction markets don't overrule state regulations
Former SEC and CFTC Chair Gary Gensler filed an amicus brief arguing that prediction markets like Kalshi do not qualify as federally regulated swaps. He contends these platforms are essentially sports gambling operations that should be subject to state-level gaming regulations.
Why it matters
The case highlights the ongoing regulatory struggle to classify novel financial products and their intersection with traditional gambling laws.
Gensler, the Indian Gaming Association and Native American tribal organizations, the American Gaming Association and Better Markets all filed amicus briefs – otherwise known as friend-of-the-court briefs – with the Sixth Circuit Court of Appeals to argue that prediction market provider KalshiEx (otherwise known as Kalshi) s sports-related prediction markets violate state gaming regulations.
The article objectively summarizes the legal arguments presented by a former regulator in an ongoing court case.
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