The Attorney General of multiple states in the United States has stated that the Commodity Futures Trading Commission is unable to bear the social costs of predicting the market.

The attorneys general of California and Minnesota stated that the US Commodity Futures Trading Commission (CFTC) is not currently equipped to handle issues related to gambling derivatives, highlighting the significant obstacles this federal regulatory agency faces in gaining jurisdiction over prediction market regulation. Minnesota Attorney General Keith Ellison revealed on Thursday that states are more familiar with addressing the "social costs of gambling" and are better able to mitigate related risks. Ellison pointed out that "states have established a comprehensive regulatory framework, while the CFTC has not." The CFTC has not yet responded to requests for comment. Over the past 18 months, the prediction market has experienced rapid expansion, allowing users to bet on various events from World Cup matches to the 2028 Democratic presidential candidate. However, this rapid growth has sparked a regulatory dispute: states and the CFTC have strong disagreements, with the latter claiming exclusive jurisdiction over such trading platforms.