Comment Text:
Comment for Proposed Rule 91 FR 12516
April 20, 2026
Michael S. Selig
Chairman
Commodity Futures Trading Commission
Three Lafayette Centre
1155 21st Street, NW
Washington, DC 20581
Dear Chairman Selig:
On behalf of Frontiers of Freedom, an organization dedicated to the principles of limited government, individual liberty, and the preservation of our federalist system, we appreciate the opportunity to submit our comments regarding prediction markets. Our primary concern lies in the potential for these markets to serve as a vehicle for federal overreach into areas of regulation that are legally reserved for states.
The regulation of sports betting and gaming has long been the domain of the individual states and tribes. Following the Supreme Court’s decision in Murphy v. NCAA, the authority to legalize and regulate sports wagering was returned to the people and their elected officials in the states.
Prediction markets, enabled by the CFTC, are now ignoring this decision, as the sports-based contracts offered on prediction markets have become a backdoor for federal expansion. The CFTC is allowing prediction markets to effectively legalize sports gambling at the federal level while preempting state and tribal authority and undermining existing regulatory frameworks.
The Commodity Exchange Act was designed to oversee financial markets and commodities that provide a clear economic purpose. Extending this oversight to the outcome of an NFL game or the performance of an individual athlete stretches the definition of a financial derivative beyond its intended scope. Such a move would transform a financial regulator into a national gaming commission – a role for which the CFTC is neither designed nor authorized.
Allowing these sports event contracts to proceed creates a regulatory backdoor where platforms can skirt state-mandated safeguards. This not only creates an unlevel playing field for state-licensed operators but also infringes upon the rights of states to determine the moral and economic parameters of gaming within their own borders. We believe it is essential to maintain the integrity of our federalist system by ensuring that the federal government does not use financial regulations to centralize control over local and state matters.
Frontiers of Freedom urges the CFTC to adopt a final rule that respects state sovereignty and avoids the preemption of state gaming laws. The Commission should remove sports event contracts from prediction markets, instead allowing for states to decide if they want gaming within their borders. Otherwise, it's pure overreach by the federal government.
Sincerely,
George Landrith
President of Frontiers of Freedom Institute
