CFTC Asserts Exclusive Jurisdiction Over U.S. Commodity Derivatives Market

The U.S. Commodity Futures Trading Commission (CFTC) has submitted an amicus brief to the Massachusetts Supreme Judicial Court, reaffirming its exclusive jurisdiction over the U.S. commodity derivatives market, including prediction markets. According to ChainCatcher, this case involves Commonwealth of Massachusetts v. KalshiEx LLC (Case No. SJC-13906). CFTC Chairman Michael S. Selig emphasized that Congress has granted the CFTC sole regulatory authority over the commodity derivatives market and warned that any state attempting to override federal law will face legal challenges. The brief outlines the legislative history and framework of the Commodity Exchange Act, highlighting the precedence of federal regulatory systems over state laws. Previously, the CFTC has filed lawsuits against Arizona, Connecticut, Illinois, and New York, successfully obtaining a temporary restraining order against Arizona to prevent state-level jurisdiction over CFTC-regulated prediction markets.