A16z backs CFTC against state prediction market bans, urges federal uniformity
Venture firm Andreessen Horowitz (a16z) filed arguments supporting the CFTC in legal battles against state bans on prediction market platforms. The firm contends that state-by-state restrictions on platforms like Kalshi and Polymarket conflict with federal law under the Commodity Exchange Act, create uneven access, drain liquidity, and limit market participation. a16z called prediction markets 'information machines' rather than mere betting venues, arguing fragmented rules impede price discovery and restrict ordinary users from accessing these markets. The intervention adds Silicon Valley weight to the debate over whether state gambling laws can override federal commodity-market oversight, placing a16z alongside regulated platforms seeking uniform national standards rather than patchwork state licenses. The filing comes as Congress moves to limit lawmakers' trades and as Kalshi and Polymarket face heightened regulatory scrutiny.
a16z's amicus brief gives Kalshi and Polymarket a deep-pocketed ally in federal court, raising the cost for states like Nevada or New Jersey to defend bans and making a Supreme Commerce-Clause showdown more likely within 18 months.