CFA Statement Regarding CFTC Suing States Over Prediction Market Authorities

Washington, D.C. - The United States Commodity Futures Trading Commission (CFTC)has sued three states that have taken action to bring prediction markets into compliance with state law. The CFTC contends that it can preempt state law under an unreasonably aggressive interpretation of its statutory remit and that is clearly inconsistent with state gaming authorities. The Consumer Federation of America released the following statement:

"Clearly the CFTC is making a land grab for state authorities in order to protect the companies they should be holding accountable," said Corey Frayer, Director of Investor Protection. "It tells you everything you need to know that this CFTC has now brought legal action against more state regulators than it has against prediction market operators."