The various courts across the country have significantly split on whether the CFTC has jurisdiction over prediction markets and contracts. What makes that split impossible to resolve is that it is not binary: some courts give the federal government total authority, some give the states most of the authority, and some determine that authority should be shared.

What makes the split even more problematic is that it is not limited to the binary question of jurisdiction over all contracts.…

Notwithstanding the varied list of complaints from the Democratic staff, it is not clear what the end intent of the report is: (i) to stop passage of the bill and maintain the current legal limbo; (ii) to fail to stop passage but to be able to say "we told you so" if something goes wrong; or (iii) to improve the bill?

The current state of limbo under U.S. law does not seem an ideal stopping point. If it is the intent of the Democratic staffers to improve the bill, then it would seem…

It is not a trivial question to ask if the FTX losses might have been significantly reduced if the SEC and the banking regulators had not effectively prevented regulated banks from acting as custodians of digital assets.

Notably, the Court expressed the view that event contracts on sporting events were not the type of contract that Congress intended to be regulated as swaps subject to the CFTC's exclusive jurisdiction.  

On the other side of the debate, in issuing an injunction in favor of the CFTC, a that swaps on at least some sports contracts were intended to be regulated by the CFTC. As an example, that Court cited a contract as to which team would sign LeBron James, as that would influence…