The CFTC is proposing clearer rules for event contracts as New Jersey asks the Supreme Court to review whether it can enforce gambling laws against Kalshi’s sports markets. Neither step settles the dispute over how federal oversight intersects with state authority.

Two measures, different purposes

Announced on Oct. 9, the CFTC’s proposed amendment would classify contracts tied to sports, politics, culture and weather as swaps. The agency says their exchange-based structure differs from ordinary betting: buyers and sellers set prices through orders, while exchanges collect trading fees rather than making money when a customer loses.

Chairman Michael S. Selig said, “The Commodity Exchange Act gives his agency sole regulatory authority over event contracts.” That is the CFTC’s position, not a court’s final ruling on the reach of state gambling laws.…