Supreme Court · U.S. · Wall Street · CoinDesk
Everyone wants SCOTUS to take up prediction markets: State of Crypto
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Several parties filed amicus briefs to the Supreme Court of the United States last week, urging it to take up a case on whether sports-based prediction market contracts are swaps, or not.
Key facts
- Diversified RWA stablecoins sustain 5-7% yield from real credit as crypto funding compresses to ~4%
- The filing disagreed with the Third Circuit Court of Appeals panel which ruled 2-1 that the CFTC had jurisdiction over swaps and prediction markets covering sports, saying that there is a distinction
- Former CFTC Chair Gary Gensler, who also played a key role in drafting regulations implementing Dodd-Frank, similarly argued that the law did not grant the CFTC authority to preempt state gambling
- Nor is the CEA’s grant of 'exclusive jurisdiction' to the CFTC an express preemption provision immunizing every contract listed on a DCM from otherwise applicable state and tribal law
Summary
You’re reading State of Crypto, a CoinDesk newsletter looking at the intersection of cryptocurrency and government. Former Senator Chris Dodd, former Commodity Futures Trading Commission (and Securities and Exchange Commission) Chair Gary Gensler, the National Football League, 39 states (and the District of Columbia), 145 tribal nations and various other parties filed amicus briefs to the Supreme Court urging it to take up this case, and with many arguing that sports-based prediction market products aren't swaps and shouldn't be regulated by the CFTC. This newsletter covered the possibility of the Supreme Court wading into prediction markets a month ago.