Comment Text:
April 30, 2026
Christopher Kirkpatrick
Secretary of the Commission
Commodity Futures Trading Commission
Three Lafayette Centre
1155 21st Street NW
Washington, DC 20581
Re: Advance Notice of Proposed Rulemaking — Prediction Markets (RIN 3038–AF65)
Dear Secretary Kirkpatrick:
I am submitting the attached article, “House Rules: Applying State Consumer Protection Laws to Prediction Markets While Hedging Against Federal Regulation,” in response to the Commission’s Advance Notice of Proposed Rulemaking regarding event contract derivatives traded on prediction markets.
This Article argues that even if courts classify event contracts as federally regulated commodities subject to the CFTC’s exclusive jurisdiction, that classification alone does not displace the application of state consumer protection and police-power laws to the harms these platforms produce. Drawing on the presumption against preemption and the established history of state regulation of gaming and consumer protection, this Article distinguishes between federal authority over market structure and state authority over market conduct and its effects.
The Commission’s request for comment specifically raises questions regarding public interest determinations, the scope of gaming as a listed activity under CEA section 5c(c)(5)(C), the role of insider information, and the characteristics of retail market participants. This Article addresses each of these concerns through an analysis of market integrity, misleading advertising, and accessibility to high-risk users—and offers a framework for understanding how state and federal oversight can operate as complementary, rather than conflicting, sources of consumer protection.
I submit this Article for the Commission’s consideration and welcome any questions. Please see attached.
Respectfully submitted,
Andrew Kim
J.D. Candidate, Brooklyn Law School (2026)
Anti-Money Laundering Specialist, ACAMS-Certified
[email protected]
I submit this comment in my individual capacity. The views expressed are my own and do not represent the views of my school, employer or any affiliated organization.
