CFTC faces 1,541 prediction market comments as NBA, MLB, FanDuel, DraftKings weigh in
The CFTC received more than 1,500 responses — specifically 1,541 submissions — to its prediction market rulemaking proposal, with commentators sharply divided on regulatory approach. The NBA, MLB, FanDuel, and DraftKings all filed formal comments, marking the first major engagement by established sports leagues and sportsbooks in the event-contract policy debate. Coinbase submitted a comment letter arguing prediction markets are derivatives that should fall under exclusive federal oversight, warning that state-by-state rules would create chaos. The submissions reveal a split between those backing uniform CFTC jurisdiction and others seeking alternative frameworks. The CFTC must now review the 1,541 submissions as it finalizes its posture toward the sector.
Coinbase's endorsement of exclusive CFTC jurisdiction gives Kalshi and other federally regulated platforms political cover to argue state-by-state licensing schemes are preempted, directly undermining efforts in the New Jersey and Illinois legislatures to impose state-level event-contract regimes.