Gensler: Dodd‑Frank Did Not Give CFTC Power Over Sports Bets

Gary Gensler filed an amicus brief Thursday with the U.S. Court of Appeals for the Sixth Circuit arguing that the Dodd‑Frank Act did not give the Commodity Futures Trading Commission authority over Kalshi’s prediction‑market sports wagers and that the agency lacks statutory power to preempt state regulation of sports betting.

Gensler, who led the CFTC from 2009 to 2014 and later served as SEC chair from 2021 to 2025, wrote that if Dodd‑Frank had preempted the states on sports betting “it would have been one of the biggest stories about Dodd‑Frank at the time.” He added, “But nobody ever mentioned it.”

The filing addresses a dispute that began after the Ohio Casino Control Commission ordered Kalshi to stop offering sports‑related event contracts to residents. Kalshi sued Ohio in October 2025. A federal judge denied the company’s request for a preliminary injunction; the CFTC has intervened on Kalshi’s behalf.

Current CFTC Chair Michael Selig and Kalshi maintain that prediction‑market contracts tied to sporting events fall under federal oversight. The agency has filed suits against several states that sought to restrict prediction‑market platforms and has proposed rulemaking intended to clarify federal jurisdiction over those markets.

Under the CFTC’s draft rules, platforms could host many kinds of event contracts, including some tied to sports, while contracts tied to terrorism, assassinations and war would face tighter restrictions, according to agency summaries of the plan.

In his brief Gensler challenged both the statutory claim and the agency’s readiness to regulate state gambling. He wrote that the commission did not request funding to oversee sports betting and asserted that “it lacks the experience to do so.” He noted the Securities and Exchange Commission has roughly six times the CFTC’s staff levels. Former CFTC chair Rostin Behnam and other former officials have urged increased funding for the agency.

State regulators have ordered platforms to halt sports‑related contracts and cited violations of local gaming laws. The case before the Sixth Circuit raises questions about federal preemption, the scope of Dodd‑Frank and which level of government should regulate emerging online prediction markets.

The Sixth Circuit’s ruling will determine whether the CFTC has the authority to regulate Kalshi’s sports contracts and resolve the statutory interpretation at the center of the dispute.