Andreessen Horowitz Backs CFTC in 18-Page Letter, Opposes State-Level Prediction Market Rules

According to an 18-page comment letter filed with the Commodity Futures Trading Commission on Friday, venture capital firm Andreessen Horowitz (a16z) backed federal oversight of prediction markets, arguing that state-level regulatory actions create a "serious barrier to impartial access" for users. The firm said cease-and-desist letters and proposed bans by state regulators against platforms like Kalshi and Polymarket conflict with the CFTC's fair access rules. A16z noted that requiring exchanges to block users based on their state of residence would "severely circumscribe available liquidity." The stance aligns with ongoing federal-state disputes, as the CFTC has filed lawsuits against Illinois, Arizona, Connecticut, New York, and Wisconsin, asserting that prediction market regulation falls under exclusive federal jurisdiction.
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