Former U.S. securities regulator Gary Gensler rejects a claim by the Commodity Futures Trading Commission (CFTC) that it has jurisdiction over certain prediction market contracts tied to sports outcomes. In comments reported across multiple outlets, Gensler argues that the CFTC’s view—treating these contracts as “swaps” within its authority—does not match how the arrangements function in practice. He characterizes sports-linked prediction market products as wagers or sports bets that fall under state regulatory frameworks rather than federal commodities oversight.
CoinDesk reports that Gensler, alongside other interested parties, submits that prediction markets should not be treated as overriding existing state rules when they relate to sports. The Block similarly frames his stance as a rejection of the CFTC’s position that the agency can regulate such sports betting activity through its swap jurisdiction. PYMNTS adds that the disagreement centers specifically on whether the contracts are properly classified as swaps under the CFTC’s authority or instead function as sports bets subject to state regulation.
Overall, the sources describe a dispute over legal classification and regulatory reach for prediction market offerings tied to sports event outcomes.
