A16z Backs CFTC, Opposes State-Level Prediction Market Bans on Friday

According to The Block, Andreessen Horowitz submitted an 18-page comment letter to the CFTC on Friday, backing federal oversight of prediction markets and opposing state-level crackdowns. The VC firm argued that cease-and-desist letters and proposed bans from 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.