Coalition of 44 state attorneys general says CFTC lacks authority over sports prediction markets

A group of attorneys general from 44 states have sent a letter to the Commodity Futures Trading Commission, arguing that the agency lacks authority to regulate sports-related prediction markets.

The letter, led by Ohio Attorney General Andy Wilson and submitted Monday as the public comment period closed, argues that the CFTC's proposed rule exceeds its statutory authority under the Commodity Exchange Act and that the agency should draft new rules.

"The CFTC in the Proposed Rule goes well beyond its statutory authority," the letter said.

"Given the infirmities with the Proposed Rule, the CFTC should reconsider and draft a new rule consistent with the Commodity Exchange Act and the Constitution." The CFTC has been locked in legal battles with multiple states over jurisdiction.

The agency maintains that several states are unlawfully attempting to regulate federally overseen derivatives markets that fall under the CFTC's "exclusive jurisdiction" under the Commodity Exchange Act (CEA).