CFTC Not Ready for Prediction Market Social Cost, State AGs Say

Attorneys general for California and Minnesota said the Commodity Futures Trading Commission isn’t equipped to handle gambling-associated issues like addiction, highlighting challenges the federal regulator faces as it aims to assert authority over prediction markets.

Minnesota Attorney General Keith Ellison told Bloomberg News Thursday that states know how to deal with the “social cost of gambling” and are better prepared to mitigate risks associated with it.

“We have a whole regime around it and the CFTC doesn’t,” Ellison said, referencing the state’s laws and regulations.

The CFTC didn’t immediately respond to a request for comment.

Prediction markets have exploded over ...