Gary Gensler, the man who spent years as one of the most polarizing figures in financial regulation, just weighed in on a fight he no longer officially has a stake in. The former SEC and CFTC chair filed an amicus brief with the US Court of Appeals for the Sixth Circuit on June 11, arguing that federal law does not grant the CFTC authority to regulate sports prediction markets.
His core argument: these contracts are gambling, not commodities, and Congress intended state gaming laws to govern them. Coming from someone who chaired both the CFTC (2009-2014) and the SEC (2021-2025), the brief carries unusual weight, even if Gensler holds no official title anymore.
The Kalshi case at the center of the fight
The brief lands in the middle of an active legal battle involving KalshiEx LLC, the prediction market platform that has been pushing the boundaries of what event contracts can cover. Kalshi began offering sports event contracts in January 2025, a move that immediately put it on a collision course with regulators and the established sports betting industry.
The CFTC has asserted jurisdiction over these contracts, arguing they fall within the agency’s purview as event-based derivatives. A federal district court sided with the CFTC in March 2026, ruling against Kalshi. The platform appealed, and the case now sits before the Sixth Circuit.
