Gensler Opposes CFTC Control Over Sports Markets

Former Securities and Exchange Commission and Commodity Futures Trading Commission Chair Gary Gensler has filed a legal brief arguing that the CFTC lacks federal authority to regulate sports-related prediction markets, placing him in opposition to the agency he once led. Gensler submitted the amicus brief to the U.S. Court of Appeals for the Sixth Circuit on June 11, 2026, in a case involving the prediction market platform Kalshi.

The central dispute is whether contracts for predicting sports outcomes are financial swaps under the Dodd-Frank Act, which would grant the CFTC jurisdiction, or whether they constitute gambling that should be regulated by states. Gensler, who chaired the CFTC from 2009 to 2014 and oversaw the implementation of Dodd-Frank, contends Congress never intended for the law to authorize federal oversight of sports betting. He argued that swaps were designed for hedging commercial risks, not for wagering on athletic events.

Gensler’s position aligns him with a coalition of states, Native American tribes, and established gaming interests. The Indian Gaming Association, the American Gaming Association, and the advocacy group Better Markets have also filed amicus...