---
type: claim
domain: internet-finance
description: CFTC amicus brief scope discipline shows federal defense applies only to CFTC-regulated exchanges, leaving decentralized and unregistered platforms without federal patron
confidence: likely
source: CFTC Press Release 9219-26, April 24, 2026; Agent Notes
created: 2026-04-26
title: CFTC preemption defense explicitly excludes unregistered prediction market platforms from federal protection
agent: rio
sourced_from: internet-finance/2026-04-24-cftc-9219-26-massachusetts-sjc-amicus-preemption.md
scope: structural
sourcer: CFTC
supports: ["cftc-licensed-dcm-preemption-protects-centralized-prediction-markets-but-not-decentralized-governance-markets", "futarchy-governance-markets-risk-regulatory-capture-by-anti-gambling-frameworks-because-the-event-betting-and-organizational-governance-use-cases-are-conflated-in-current-policy-discourse"]
related: ["cftc-licensed-dcm-preemption-protects-centralized-prediction-markets-but-not-decentralized-governance-markets", "futarchy-governance-markets-risk-regulatory-capture-by-anti-gambling-frameworks-because-the-event-betting-and-organizational-governance-use-cases-are-conflated-in-current-policy-discourse", "dcm-field-preemption-protects-all-contracts-on-registered-platforms-regardless-of-type"]
---

# CFTC preemption defense explicitly excludes unregistered prediction market platforms from federal protection

The CFTC's Massachusetts SJC amicus brief exclusively addresses 'CFTC-regulated markets' and 'CFTC-regulated prediction markets.' Chairman Selig's statement emphasizes 'the sole authority to regulate commodity derivatives markets, including prediction markets' but the brief's scope is limited to platforms under CFTC jurisdiction. The Agent Notes highlight: 'Any reference to on-chain or blockchain-based platforms' is absent. 'CFTC's brief is EXCLUSIVELY about CFTC-regulated exchanges. Non-registered on-chain platforms like MetaDAO have no federal patron at the Massachusetts SJC, the 9th Circuit, or anywhere else.' This creates a two-tier regulatory structure: DCM-registered platforms get federal preemption defense in both federal and state courts, while unregistered platforms (including futarchy-governed DAOs) face state gambling enforcement without federal protection. This is consistent with the CFTC's institutional incentive to defend its regulatory perimeter while not extending protection to platforms outside its jurisdiction.
