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00:02New Jersey has asked the Supreme Court to decide whether states or the federal government
00:07should regulate prediction markets offering sports-related event contracts, according to CNBC.
00:14The petition challenges an April ruling from the Third U.S. Circuit Court of Appeals that
00:19found event contracts are federally regulated derivatives under the Commodity Futures Trading
00:25Commission. The request follows a conflicting Ninth Circuit ruling that sports-related
00:29event contracts are not swaps regulated by the CFTC.
00:3344 state attorneys general argue the contracts amount to sports betting and fall under state
00:38authority.
00:39Cauchy maintains it operates a nationwide financial exchange subject to exclusive CFTC jurisdiction.
00:46A Cauchy spokesperson said, New Jersey's filing does not change its position that the CFTC
00:52has exclusive authority over its nationwide financial exchange and that state law is preempted.
00:57DraftKings and Flutter Entertainment shares rose more than 5% after New Jersey filed the petition.
01:02For all things money, visit Benzinga.com.
