Senator Schiff Condemns CFTC Mandate on Prediction Market Geofencing
U.S. Senator Adam Schiff has publicly condemned the Commodity Futures Trading Commission (CFTC) over its recent directive requiring prediction markets to operate nationwide, setting up a political clash over state-level gambling laws.
On Friday, November 6, Schiff—a California Democrat serving on the Senate Agriculture Committee that oversees the CFTC—took to X to criticize the agency's new guidance. According to reporting by Jesse Hamilton at CoinDesk, Schiff argued that "the CFTC and its rogue chairman now appear to be encouraging platforms to continue offering gambling products in contempt of these court orders." The senator further described the mandate as the agency's "most egregious attempt yet to undermine state law, the tribes, and now, the courts."
The backlash follows a late-Thursday interpretation issued unilaterally by CFTC Chairman Mike Selig. The guidance demands that designated contract markets (DCMs) cease domestic geographic restrictions within 30 days or submit an explanation for why compliance is not feasible. As Dustin Gouker at The Event Horizon reported, Selig stated that derivatives markets must operate on a uniform national scale, arguing that state-by-state access restrictions violate the Commodity Exchange Act's impartial access requirements.
Clashing with Courts and Consumer Advocates
The CFTC's federal mandate directly conflicts with multiple state and tribal court orders that have forced platforms to block local users. Kalshi, for example, is currently geofenced in Nevada, Washington, and Michigan, and recently faced a federal injunction barring its sports contracts on the lands of two California tribes. The ongoing regulatory friction highlights the complex landscape for traders comparing Kalshi vs Polymarket, as both platforms navigate distinct jurisdictional hurdles.
Consumer advocacy groups have also joined the opposition. Better Markets praised the recent string of federal court rulings against prediction markets, calling them clear decisions that reject illegal sports betting. The group stated that the CFTC's position promoting unrestrained prediction markets is "baseless," demanding that lawbreakers be prosecuted.
With the 30-day deadline looming, regulated exchanges face a difficult choice between defying federal regulators or violating local court orders. Market participants utilizing the best Kalshi tools will be watching closely to see if the platform restores access in restricted states or submits a formal explanation of unfeasibility to the CFTC's Division of Market Oversight.