“As I’ve said before, the CFTC has the expertise and responsibility to defend its exclusive jurisdiction over commodity derivatives, and that’s exactly what we’ll do.”
Selig also posted:
The filing was submitted in North American Derivatives Exchange, Inc. et al. v. The State of Nevada on relation of the Nevada Gaming Control Board et al. In its brief, the agency details the statutory and judicial foundations of its authority over commodity derivatives, arguing that courts and Congress have repeatedly affirmed its role, while states and other federal entities lack power to regulate markets under its exclusive oversight.
The CFTC first formally recognized event contracts in 1992 with approval of the Iowa Electronic Markets at the University of Iowa. Following the 2008 financial crisis, Congress granted the commission broad authority over contracts based on commodities, as defined under the Commodity Exchange Act, reinforcing its mandate to accommodate financial innovation within regulated markets.
FAQ ⏰ Why did the CFTC file an amicus brief in the Ninth Circuit? To affirm its exclusive jurisdiction over U.S. commodity derivatives markets, including prediction markets. What are event contracts according to the CFTC? They are commodity derivatives that allow hedging of event-driven risks and portfolio exposure management. What case is at the center of the CFTC’s legal defense? The filing was submitted in North American Derivatives Exchange, Inc. et al. v. The State of Nevada on relation of the Nevada Gaming Control Board et al. How did Congress expand the CFTC’s authority after 2008? Congress granted broad authority over commodity-based contracts under the Commodity Exchange Act.
