CFTC sued by fantasy sports platform Sleeper Markets

The operator alleges that the CFTC intercepted its futures commission merchant application.  

Fantasy sports platform Sleeper Markets has filed a lawsuit against the Commodicty Futures Trading Commission (CFTC) for allegedly interfering with its efforts to become a registered prediction market trader.  

This latest action builds on Sleeper’s previous accusations that the CFTC had intervened with its application to become a registered futures commission merchant, a procedure required for any company now looking to enter the booming prediction space. 

Specifically, Sleeper has now sued the commission for allegedly unlawfully involving itself with the National Futures Association (NFA) – the self-regulatory organization overseeing its futures commission merchant application – to divert the company’s efforts towards the CFTC for review and subsequent approval. 

According to NFA records, Sleeper filed its futures commission merchant application in May, with confirmation of its completion being released in August. Nevertheless, Sleeper is now directly accusing the CFTC and its Chairman, Caroline Pham, of unlawful intervention.  

Specified as part of the suit, Sleeper stated: “This case is about the CFTC flagrantly ignoring applicable law, regulations, and decades of practice to block – without process or explanation – what should have been a routine application to serve as a broker in the derivatives markets. The CFTC’s unlawful actions present an unfair competitive hurdle to a growing US industry.”  

Good to know: The search for a new head of the CFTC has seen multiple contenders with backgrounds in the prediction market space put forth for the position 

Indeed, current CFTC Chair nominee Brian Quintenz – former member of the Kalshi board – was put forward by Donald Trump but has seen his nomination stall. Now, the White House is reportedly considering Tyler Williams, a lawyer who previously defended Kalshi, for the role – among other candidates.  

Over the course of 2025, the prediction market sector has exploded into popularity – particularly within the sports events contracts space. As of yet, the CFTC has provided little to no direction on the legality of this particular element of the prediction sector. Earlier this month, however, the commission did give the green light for Polymarket to re-enter the US landscape following its prior ban from the market in 2022, with the likes of FanDuel and DraftKings also now reportedly considering entering the space.  

Will Underwood

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