Former SEC Chairman Gary Gensler: Prediction markets cannot override state government regulations.

CoinFeed reported on June 12 that, according to CoinDesk, former Securities and Exchange Commission (SEC) Chairman Gary Gensler filed an amicus brief with the Sixth Circuit Court of Appeals, arguing that federal law does not grant the CFTC the power to regulate sports betting markets and that these markets should not supersede state gambling regulations. The case stems from a lawsuit filed by Kalshi to prevent a lawsuit in Ohio, which a federal judge dismissed in March. In his brief, Gensler pointed out that the Dodd-Frank Act's definition of a swap does not include sports betting contracts, which are not in line with the purpose of the Commodity Exchange Act. Organizations such as the Indiana Gambling Association also filed briefs, arguing that sports betting markets infringe on tribal sovereignty and that Kalshi's "legal sports betting" app is draining funds from tribal and state government revenue.