California and Minnesota attorneys general are challenging the Commodity Futures Trading Commission’s (CFTC) approach to regulating prediction markets, arguing the federal agency is not equipped to handle gambling-related harms such as addiction and social costs.
Minnesota Attorney General Keith Ellison stated that states are better positioned to manage the risks associated with gambling. He emphasized that the CFTC's oversight may not effectively address issues like addiction and societal consequences.
Ellison and California Attorney General Rob Bonta have raised concerns about the CFTC's jurisdiction over prediction markets, highlighting the need for state involvement in regulating gambling-related activities.
