A16z Backs CFTC, Calls State-Level Prediction Market Rules a 'Barrier to Impartial Access'

According to The Block, venture capital firm Andreessen Horowitz submitted an 18-page comment letter to the Commodity Futures Trading Commission on Friday, supporting federal oversight of prediction markets and opposing state-level crackdowns. A16z argued that cease-and-desist letters and proposed bans by state regulators create a "serious barrier to impartial access" for users and would "severely circumscribe available liquidity."

The CFTC has filed lawsuits against Illinois, Arizona, Connecticut, New York, and Wisconsin, asserting that prediction market event contracts fall under federal jurisdiction as swaps. State regulators counter that platforms like Kalshi and Polymarket offer unlicensed gambling products.