Commodity Futures Trading Commission filed a brief backing Crypto.com against Nevada.
Dispute centers on sports prediction contracts labeled gambling by Nevada Gaming Control Board.
Firms like Coinbase and Robinhood expand prediction markets as political debate grows.
The U.S. commodities regulator said it has exclusive authority over prediction markets. The statement followed a court filing in a dispute involving Crypto.com and Nevada regulators. The move places federal oversight against state gambling laws as prediction markets expand across the U.S.
CFTC Steps Into Ongoing Court Fight
According to Crypto In America, the Commodity Futures Trading Commission filed an amicus brief with the Ninth Circuit Court of Appeals this week. The filing supports Crypto.com in its legal battle against Nevada regulators. The agency argues federal commodities law overrides state gambling rules for prediction markets.
CFTC Chairman Michael Selig addressed critics directly in a video posted on X. He said the agency would defend its authority in court. The case stems from actions by the Nevada Gaming Control Board, which moved to block Crypto.com’s sports contracts.
Nevada labeled those contracts unlicensed gambling. However, Crypto.com maintains they are federally regulated derivatives. A district judge initially sided with Nevada. As a result, the appeal now sits before the Ninth Circuit Court of Appeals.
Industry and Political Reactions Intensify
Former CFTC Chairman Chris Giancarlo also filed a brief supporting the agency’s position. He cited growing state actions in Nevada, New York, and Massachusetts. Meanwhile, prediction markets continue to gain commercial traction.
Platforms like Kalshi and Polymarket have secured partnerships with major brands. Companies including Coinbase, Gemini, Crypto.com, and Robinhood have also explored similar offerings. On Wednesday, Bitwise filed with the SEC to launch prediction market ETFs tied to future U.S. elections.
Not everyone supports the expansion. Utah Governor Spencer Cox criticized prediction markets on X, calling them gambling. Senator Elizabeth Warren also opposed the CFTC’s stance, warning against limiting state authority.
White House Reviews Stablecoin Yield Talks
Alongside the legal fight, federal officials continue broader crypto discussions. Sources told Crypto In America that the White House may host another meeting on stablecoin yield this Thursday. The talks would bring together banks and crypto firms.
The proposal under review could allow payment stablecoins to earn yield through limited DeFi activity. Banking sources described the idea as constructive. However, they noted unresolved concerns over yield protections.
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