These platforms are not operating in the shadows. They’re regulated by the CFTC under the same authority that governs traditional futures markets. Yet, despite this clear federal mandate, state regulators are attempting to undermine the system.
Even former CFTC Commissioner Kristin Johnson, in her final days at the agency, expressed skepticism. Her remarks echo a long-standing misperception: It’s a confusing structure when federally regulated financial contracts are games of chance.
We’ve seen this play out before. When futures markets first emerged in the late 19th and early 20th centuries, critics decried them as speculative gambling. However, Congress recognized their value and stepped in to regulate, not prohibit. The result has created one of the most stable and prosperous financial systems in the world, anchored by the idea that markets, when properly overseen, can help Americans navigate uncertainty.
Prediction markets deserve that same chance. But if the courts rule against Kalshi, the implications won’t stop there. The precedent set would open the door for 50 different state regulators to assert gambling authority over federally regulated futures markets. Slot machine regulators were never meant to have control over American financial markets — that would be a direct threat to the very system farmers rely on, and one Congress has worked for decades to protect. If prediction markets can be dismantled this way, agricultural futures will be next.
This isn’t about one company. It’s about the integrity of a system that Americans — farmers, families and businesses alike — depend on every day. Undermining the CFTC creates legal confusion and puts at risk the financial tools that keep American agriculture afloat.
This should not be a partisan debate. It’s about common sense.
