Seventeen Democratic U.S. senators asked the Senate to prevent the Commodity Futures Trading Commission (CFTC) from using federal funds for litigation related to prediction markets.

On June 26, Cointelegraph reported that they sent a letter to the leadership of the Senate Appropriations Committee's Financial Services and General Government Subcommittee, urging it to block budget spending on lawsuits against state gaming regulators.

The letter was jointly sent by Senators Richard Blumenthal and Jeff Merkley, along with 15 other Democratic lawmakers.

They criticised Chairman Michael Selig (마이클 셀릭) for infringing on state authority by asserting the CFTC's exclusive jurisdiction over prediction markets. Selig has argued that the platforms' event contracts qualify as swaps under the CFTC's jurisdiction.

The lawmakers said the CFTC's response could result in online prediction markets being able to bypass state consumer protection and oversight. They also warned that such moves could lead to a competitive easing of gambling regulation.

As of June, the CFTC is engaged in legal disputes over prediction markets with regulators in Connecticut, Illinois, Arizona, Kentucky, Wisconsin, New York, Minnesota, Rhode Island and New Mexico. Some companies, including Kalshi and Polymarket, have also filed separate lawsuits against state authorities in support of the CFTC's position.